The deringing filter is used to eliminate noise near sharp edges caused by the quantization process ( so-called Gibbs effect ). This noise is more noticeable in animations, where there are higher frequency coefficients. The deringing on the luminance plane is activated at post-processing level 5 or higher; the deringing on the chrominance planes is activated at post-processing level 6. Due to high CPU requirements and relatively low impact of the filter, it is only turned on for Pentium-III or newer processors.
In some cases this filter can cause excessive blurring of the picture, so you may want not to turn it on.
No deringing:
Deringing: