Extra requirements from comments:
Sorted
If sorting the values is ok, handling case-sensitive is easiest done using a TreeSet with a case-insensitive Comparator, like the String.CASE_INSENSITIVE_ORDER, or by using a Collator for full language support.
static String toString(List<String> list, boolean unique) {
    Collection<String> dataToProcess = list;
    if (unique) {
        dataToProcess = new TreeSet<>(String.CASE_INSENSITIVE_ORDER);
        dataToProcess.addAll(list);
    }
    
    StringBuilder result = new StringBuilder();
    String delimiter= "";
    for (String s : dataToProcess) {
        result.append(delimiter).append(s);
        delimiter = ",";
    }
    return result.toString();
}
Test
List<String> list = Arrays.asList("option1", "option3", "OPTION1", "OPTION2", "option4", "option2");
System.out.println(toString(list, false));
System.out.println(toString(list, true));
Output
option1,option3,OPTION1,OPTION2,option4,option2
option1,OPTION2,option3,option4
Notice how the "unique" result is sorted, but the non-unique result is not.
Using Collator
For better language support, use a Collator:
    if (unique) {
        Collator collator = Collator.getInstance(/*Locale.GERMANY*/);
        collator.setStrength(Collator.SECONDARY);
        dataToProcess = new TreeSet<>(collator);
        dataToProcess.addAll(list);
    }
Unsorted
To do it without sorting the values, we'll keep using the TreeSet but build a new list.
    if (unique) {
        Collator collator = Collator.getInstance(/*Locale.GERMANY*/);
        collator.setStrength(Collator.SECONDARY);
        Set<String> set = new TreeSet<>(collator);
        dataToProcess = new ArrayList<>();
        for (String s : list)
            if (set.add(s))
                dataToProcess.add(s);
    }
Output
option1,option3,OPTION1,OPTION2,option4,option2
option1,option3,OPTION2,option4