These flags enable/disable the install options that you see in the installer.

/FULL/NOFULL - enables/disables the full install option
/SHORTCUT/NOSHORTCUT - enables/disables both the add desktop shortcut and add startmenu shortcut options
/DESKTOP/NODESKTOP - enables/disables the add desktop shortcut option
/STARTMENU/NOSTARTMENU - enables/disables the add startmenu shortcut option
/BACKUP/NOBACKUP - enables/disables the backup current files option
/UPDATE/NOUPDATE - enables/disables the automatically check for updates option
/PORTABLE/NOPORTABLE - enables/disables the run as portable option

Other flags that are part of the NSIS installer:
/D=PATH - specifies the install path
/S - performs a silent install with no dialogs

I just tested the /NODESKTOP option here and it worked correctly. No icon was created on the desktop.