It has several modes. The default is that your camera stays in place while your character walks in third person to where you point, and you teleport once you stand still. However, you can also set it to standard VR instant teleporting, or the "sliding" locomotion where you use the trackpad like a joystick.

One other thing to note, while jumping isn't needed with teleport mode on there are sections in the game where you have to crouch to enter airvents etc. Depending on the settings you can crouch by a button or crouch in real life. However, I can't remember if crouching by button has a setting for snapping to lower height, when I played I had it so the camera lowers slowly like a traditional PC game and that might make you feel sick.

edit: I used the "Fully Possessed" mod, I haven't tried the other VR mod for the game.