The process by which regular EQ's work will change the phase of the input signal around the EQ changes you make. This isnt too big of a deal for most instruments, but when you are EQing two things that should be in phase with eachother it can be. This is why they have linear phase EQ's, which do not change the phase while EQing, but they are much more processor intensive which is why they arent used as often. Something like EQing parallel compression signals, or individual mics on the same guitar signal would benefit from linear phase EQ. The reaper EQ is not a linear phase EQ, so it will change the phase of different frequencies based on how you EQ. So the line that shows up when you hit that button is showing you how the phase is changing based on your processing. The phase change will be more drastic the more drastic your EQ is.