What you have should work.
TSQL means you're listening for and transmitting the same tone.
Tone means you're transmitting a tone (to get into a repeater, for example) but the radio will break squelch on *any* signal strong enough on that frequency, whether or not it has a tone. For repeaters, you only need to send a tone, to open squelch on the receive side of the repeater, you don't need it for listening (unless you're in a really busy environment and you want to *only* hear traffic from that repeater on that channel).
My area is fairly busy, so if I'm listening to the repeater on 20, there's often a bunch of other noise on simplex 20, which my radio will hear, so I like having the receive side tamped down as well.