I have followed the instructions here:
The developers of this app have not set up this app properly for Facebook Login?
Made my app public and the circle is
captain_a is right that your app needs to be public with a developer email address. But if you are still getting the error then make sure that your website is using an SSL certificate.
For more detailed information and workarounds please checkout my answer at Facebook app is Public, but gives error "App not setup" when logging in