This command makes sure the loops are correctly sequenced and the direction is correct before performing Welding, which require proper loop sequence and direction to work property. Without this checked, it's possible to create specific types of weld effects by manually changing loop directions.
Loop sequence is the inside-out sequence of loops, where inner loops are first, followed by outer loops. Loop direction is the clockwise or counter-clockwise direction of a loop. The Reorder Loops command will ensure both are correct. This option will cause Reorder Loops to be called automatically when welding.