This is a new-ish option that allows you to basically change the resolution at which the game environment is rendered, either going above or below your monitor's resolution, and then scaling the image to fit again. This is different to dropping the resolution of the actual game client, as this has 0 impact on how your UI is rendered, meaning you can drop it down to non-existant levels, making the game a blurry mess, but your frames, bars, menus, etc will remain the exact same.
Changing this setting can have a decent sized impact on your performance and since we often have a bunch of scaled down game windows, dropping it to something like 0.5 (50% renderscale) doesn't have such a big impact on how those windows look.
Another great thing about this setting is that it can be changed instantly, unlike client resolution. This means that you can make a slot-swap macro system, and automatically have your focused client be rendered at your normal resolution, while non-focused ones will use a lower one, saving performance.
**NOTE**
The video was made before Legion came around. As such a lot of those variables are now different. You can find an up-to-date list here: http://www.dual-boxing.com/threads/5...tings-(Legion)
*edit*
Damn, Bob beat me to it.
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