I don't really know.
But I suspect it's some sort of an AMR according to a conditional check every few timesteps.
Please correct me if I'm wrong, I can look it up further.
From what I've tried, if your model doesn't require a very sophisticated mesh resolution, like channel slopes or sudden drop on the depth there is no need for the mesh refinement.
Even if it needed, it's better to try to refine the mesh first using stbtel and see if the results are convenient or severe hydrodynamic conditions requires this key active.
In this case of activating the keyword sensitivity analysis is even more critical, as the degree of refinement could change the results entirely.
Good luck with your study
Ahmed Salah