Eorn is a wanted man and if you confront him about it you get 4 ways to deal with him:
1: Promise to keep it secret, 2: Give him 300 money, 3: Turn him in or 4 Attack
If you promise to keep it secret, you will have an option to brought up the subject again: "We need to talk about..."
If you do so, you only get options of 1: Give him 300 money, 2: Turn him in or 3 Attack.
There's no option to back down from conversation. The situation hasn't changed in any way, but the options have.