This option affects the function keys (F1 to F12) and the top row of the numeric keypad.
ESC [n~, the function keys generate sequences like ESC [11~, ESC [12~ and so on. This matches the general behaviour of Digital's terminals.
ESC [[A through to ESC [[E. This mimics the Linux virtual console.
ESC OP through to ESC OS, which are the sequences produced by the top row of the keypad on Digital's terminals.
ESC OP through to ESC OS.
ESC OP through to ESC O[
ESC [M through to ESC [X. Together with shift, they generate ESC [Y through to ESC [j. With control they generate ESC [k through to ESC [v, and with shift and control together they generate ESC [w through to ESC [{.
ESC OP become ESC [1;bitmapP and similar; for F5 and above, ESC[index~ becomes ESC[index;bitmap~.
If you don't know what any of this means, you probably don't need to fiddle with it.