I am not familiar at all with Enterasys devices but I got a good guess as to what it might mean. Given an example with a Cisco router.
ip route 220.127.116.11 255.255.255.0 18.104.22.168
ip route 22.214.171.124 255.255.255.0 126.96.36.199
ip route 188.8.131.52 255.255.255.0 184.108.40.206
interface ethernet 0
ip address 220.127.116.11 255.255.255.0
A packet arrives at this router destined to 18.104.22.168. The router does a route look up and sees that it needs to send this packet to 22.214.171.124. Now it does a route lookup to see how to get to 126.96.36.199 and sees that it needs to go to 188.8.131.52. It does another route table lookup and sees that to get to 184.108.40.206 it needs to go to 220.127.116.11. It looks into its route table one last time and sees that 18.104.22.168 is directly accessible out its eth0 interface, so it builds an Ethernet frame and sends it over to 22.214.171.124.... who hopefully doesn't have to recurse through its routing table quite so often to find where it needs to send the packet.
Looking at the above you might say why not just point all of those static routes to 126.96.36.199 in the first place... I would ask the exact same thing.
One reason why you might want to do this, albeit not as exaggerated as the above, is for some traffic engineering. Suppose you only want a route to be valid if a dynamically learned route is in your route table. So what you could do is write a static route and point it to a next hop thats only reachable if your dynamic routing protocol knows about it and has a route to it... Remember if the next hop is not reachable the static route will not be placed into the routing table.
So obviously in the above example a lot of CPU cycles is wasted and if there was a lot of packets, and no route caching, then your router would explode. The guys at Enterasys must have recognized that having a route recurse to another route is useful but also set a limit that is user configurable so that you didn't blow up their device...
That was a lot of typing for what hopefully is the right answer for your Enterasys device. You could test it by adding some static routes with the recursion set low and see how many static routes will it recurse through before it takes them out of the route table.