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What does "Make layer visibility change undoable" mean? Should I have it on or off?
Layer Visibility items will be part of history states list when you make layer visibility change undoable.
»Should I have it on or off?«
That depends on your taste and workflow.
If your workflow should include hiding and showing a Layer repeatedly (to assess some touch-up for example) this could fill up your History and eliminate more relevant History-steps quickly.