@joho NFD (#Unicode Normalization Form Canonical Decomposition) should fully decompose the strings, so Ö should become O + combining diaresis, and Å (and Å) would be A + combining ring above.
NFC (...Canonical Composition) is usually more compact, it recombines into base characters, so Ö stays an Ö, O + diaresis becomes an Ö, and an Å becomes an Å.
I would expect "FORM_D" to be NFD, but I am not a #PHP programmer.