Cubase doesn’t display latencies for the plugins in use properly/accurately. When “Adjust for Record Latency” is disabled (not checked) users can relatively easily measure those latencies (as I’ve shown). When it’s enabled, users can determine if those latencies will be properly compensated for during the record (and likely playback) process(es). Although another DAW (like Bitwig) can be used to display the plugins’ reported latencies, there’s no guarantee that they are correct (just like the reported latencies of audio interfaces)! 
IMO calling the function something like “Compensate for Input Plugin Latencies when Recording” with a concise description of the function in the manual would be prudent though! 