Understanding "keep music folder organized" check box

I have never been quite sure what the difference is between keeping the "keep music orgainized" check box checked or un-checked, despite everything I have read. Most of my iTunes life it has been left on and I am happy with the way it has organized the iTunes Media folder. Some anomalies are artist albums getting organized in "compilations" where I think they should be just under the artist... but I guess this is a fault of the meta data, and not an iTunes thing. I have kept "keep orgainized" disabled for several years. I am concerned what might to my media folder if I turn it on now. Music app has been the only app accessing the Media folder, so that may mean that it is already under "iTunes organization management" and therefore it won't make any difference if I check the box now. Is this correct? Am I correct that the function of "keep organized" would apply if I were to introduce audio that had been organized some other way, (or not organized at all), and then that check box would either leave it as is or organize it like everything else iTunes has put in the Media folder?

Thanks for helping clarify my understanding

dan