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HEVC will generally give you better quality at low bitrates compared to AVC, but is typically a bit more work to encode, and not as well supported. If you have hardware at both ends that support it though it will likely be the better choice, but not every device is going to be able to handle it, hence the choice, with it defaulting to off as the safer option.
In your case, the 2080 ti does have a hardware HEVC encoder, and the Nvidia Shield can decode it no problem, so turning it on is likely the better option in your case.
if its enabled and gpu does not support it, it will use cpu to encode instead
https://www.amd.com/en/products/graphics/radeon-for-creators/video-editing.html