You can use this option to make use of javac command line arguments for example consider this piece of code:
String str = (String)"Hello"
Starting jshell normally and using the same would result as:

While at the same time you can enable compiler errors on warning(-Werror) and make use of the -Xlint key cast while compiling to warn you of the explicit cast used in the above code using -
jshell -C-Xlint:cast -C-Werror
and the same statement would result into warnings and error from Jshell compiler as:-

Though IMO, this certainly is documented far less in terms of what all flags shall/shall not be used while using the JShell -C command line option.