This policy setting determines whether or not documents opened in Office 2010 are deleted from the Office Document Cache ...

This policy setting determines whether or not documents opened in Office 2010 are deleted from the Office Document Cache when they are closed.

If you enable this policy setting documents are deleted from the Office Document Cache when they are closed. 

If you disable or do not configure this policy setting, documents are not deleted from the Office Document Cache when they are closed.

Note: This policy setting does not apply to documents in SharePoint Workspace. Documents in SharePoint Workspace will not be deleted from the Office Document cache when they are closed.