CDN's are great but they may go down once in a while for minutes or hours and will disrupt your website from loading properly or may not load at all. So it is better to have a quick and efficient fallback solution as your failsafe.
<script type="text/javascript">  
if (typeof jQuery === 'undefined') {  
   var e = document.createElement('script');  
   e.src = '/local/jquery-2.0.min.js';  
   e.type='text/javascript';  
   document.getElementsByTagName("head")[0].appendChild(e);  
}  
</script> 
It should be well noted however that the above approach does not "defer" execution of other script loading (such as jQuery plugins) or script-execution (such as inline JavaScript) until after jQuery has fully loaded. Because the fallbacks rely on appending script tags, further script tags after it in the markup would load/execute immediately and not wait for the local jQuery to load, which could cause dependency errors.
A solution for that is to use document.write() and by doing so 
you will block other JavaScript included lower in the page from loading and executing.
as in : 
<script type="text/javascript">  
  if (typeof jQuery === 'undefined')   
     document.write('<script type="text/javascript" src="/local/jquery-2.0.min.js"><\/script>');  
</script>  
In your code : 
‘||’ is essentially acting as an OR statement. If ‘window.jQuery’ returns FALSE (in other words, if the jQuery was not successfully loaded), then it executes the next statement – adding a script tag to the page that references your local copy of the library.
EDIT: Explanation to the code used in the question.