(Landed on this thread thread while researching the setting under Marshmallow.)
Not sure I understand the answer above. According to
this post on StackExchange, the developer option tweaks a setting which Wi-Fi State Machine to uses to decide to abandon a weak wi-fi signal and start using your cellular data connection.
Does it save your battery? Maybe. If it stops the wi-fi radio from expending energy on a weak AP connection, particularly during data transfer, and that saves power, sure. But I'd guess it has a negligible effect on battery because the radios are doing this switching
anyway, just sooner with this enabled, as you move further out of range of the wi-fi AP.
BTW, I am not a network engineer, don't even play one on TV. Take my answer with a grain of salt.