First off, I’d just recommend steering away from the developer options. They can and do cause some instability in apps and the overall system. Typically the only time I ever use them myself is to enable ADB and debugging.
The system graphics preference was introduced, if I remember from the Dev beta, in android 10. It’s known as ANGLE (Almost Native Graphics Layer Engine) and it’s a chrome based project that aims to translate graphics APIs such as OpenGL2 and 3, ES to direct3D9 and 11 and make them all run natively on your hardware. You can read more here
In a simple term, it aims to translate one graphics API to another natively on device to improve performance and stability.
Should you enable it? No. But does it hurt to try? No.
It’s entirely possible you might get slightly better performance, and it’s equally as possible that your device will absolutely tank frames and crash. Some devices will benefit from it more than others. But with native Vulkan support for infinite flight coming in the future, it’s probably wise just to hold off for now.