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Polyphony is the amount of voices that can play simultaneously. If you have a patch or sound that uses two voices and you retrigger it so that the tail end overlaps then you could easily use anywhere from 4 voices to all 64 voices depending on how fast you press the keys.
The point of lowering polyphony for certain parts would be to save cpu power and free up resources for parts that require more polyphony.
Some synth sounds only work when monophonic (polyphony=1), with some classic lead and bass sounds you don't want any overlap. Not so crucial on a MPC, but on analog synths you can play around with trigger settings.
You can set things up so you have a slow filter change that only triggers on the first note, keeps going as long as you play more notes without leaving a gap between them. Very Prog!