OneDrive.exe updates roll out in two waves. The first wave starts when an update becomes available and normally takes one to two weeks to complete. The second wave starts after the first wave completes.
This setting prevents OneDrive sync clients from being updated until the second wave. This gives you some extra time to prepare for upcoming updates.
By default, updates are installed as soon as they're available during the first wave.
If you enable this setting, OneDrive sync clients in your domain will be updated during the second wave, several weeks after updates are released broadly to Office 365 customers.
If you disable this setting, OneDrive sync clients will be updated as soon as updates are available during the first wave.