If you have noticed this option in your compiler settings and you didn't know what was that about, let me explain it to you.

Literal strings need to be placed in RAM when you are passing them by reference.

Therefore, if you are passing a literal string to a function via reference, then we copy the literal to RAM and finally pass the RAM address to the called function.

If you use this option then a literal string will be placed on a local frame of the current procedure (dynamic link).

If you do not use it then a literal string will be linked as global variable (static RAM).

Using the Dynamic link for string literals could help you save up the RAM memory when you're using the literal strings 

and prevent errors such as "Not Enough RAM" in compiler.