This feature is about the ability to create records (at least for custom entities) as inactive (statecode = 1). Currently, the only workaround is to perform it in two steps: 1) create the record as active 2) update the record to inactive. This works fine in some cases, but for larger implementations especially in large data migration, if the 2nd transaction could be avoided and it would increase performance and also potentially avoid custom logic (e.g. plugin) firing for nothing. This would also make other integrations like Dataflows simpler should records need to be integrated as inactive.