Simply dithering 16 bits to 24 bits does nothing at all to the sound quality of a red book CD. It doesn't add any dynamic range because the dynamic range is what it is on the original recording. 24 bits would provide for an increase in potential dynamic range over 16 bits but you would have to record with a 24 bit depth to realize any of that potential. You would also have to play it back with a 24 bit depth.
Understand that CD's are all 16 bits by definition so there isn't any 24 bit content on them at all. My guess is that the feature is there for "future proofing" purposes. You can't make any use of it with red book CD's. The trend in recording seems to be reducing dynamic range rather than increasing it so I would view the future they are trying to address as pretty far away.
It doesn't cost anything to turn it on to see what, if anything, it does. Try it out. Then your curiosity will be satisfied.