Action configurations are already overwhelming with information... If every drop box has additional label, which (as you correctly notice) will have to change on selection in other drop boxes, that will be too much even for me
In practice, I have made selections more or less self explaining. So when you open the list of drop box you can easily understand what it is about (or simple label will not help to understand the meaning).
F.e. Strip Action has to somehow identify the strip. The label for the first drop box (A) is "Type". The label for the second (B) is not so short... it is "The way to find reference strip for the strip in question". The third (C) is really the second dependent. It can be "State based shift from the reference" (so, selects Set) or "Search the strip with this name" (so, selects State from the Set specified in (B). Finally (D) is really offset.
But... If you are going to choose some strip, it is obvious you need its type. So there can be nothing else in (A). As mentioned, reasonable label for (B) is too long. Between (B) and (C) there is already label, "+" or "->", so it explains what it is going to do. Offsets are "+-<number>". What else that can be, other then offsets?