The object cache stores metadata about various SharePoint objects, such as site collections, sites, libraries, lists, documents and list items. Creating these objects in memory is a resource-intensive process, so there are clear advantages to maintaining information in a cache to avoid recreating the object every time a page requests navigation data or the results of a query. Site navigation in SharePoint, together with various Web Parts such as the Content Query Web Part, relies on the object cache for data. Developers can also leverage the object cache to improve query performance in customizations. Like the page output cache, the object cache is only available on sites where the publishing features are enabled.
What is the ideal situation to use the object cache

By default, the object cache is enabled on every site collection. You cannot disable it nor would you want to, because it improves the performance of your SharePoint farm with few, if any, drawbacks. However, you can configure various aspects of how the object cache behaves.
Configuring the object cache

You can configure the object cache on a per-site collection-basis. To do this, on the Site Settings page, under Site Collection Administration, click Site collection object cache. You can configure various aspects of object caching as in the following:
In most cases, you should not need to change the default object cache settings. In some circumstances, you may need to increase the size of the cache. To determine whether this is the case, monitor the "Total number of cache compactions" performance counter. If this number is high, you can improve performance by increasing the size of the cache.