boboweb I opened the Quest settings in front of a video in DeoVR with a lot of black (I tried one of Noir) to have access to the switch. You can see black getting blacker when switching the feature on. But at least to me the video as a whole didn't look 'better' as before, so I switched it off again and crossed it off my bucket list.
As the feature is based on dimming the backlight, it may save some battery life. But no idea if this is true; activating the feature might just as well consume more energy.
There is also a warning that the feature may adversely affect some types of content but they don't say which types of content.