What this parameter will do (or should do) is to limit merging transcript data from genes next to each other in the genome.
See it as sort of: if distance between two regions where RNAseq data maps is < max intron size their is a greater chance they will be from same gene, if above that threshold it will be more likely split and seen as two distinct gene regions.
wild guess: the max intron size of the genes in that genome? :)
Can't find a solid answer .. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4550110/pdf/icn046.pdf From that paper i can assume that i should propably fix this parameter at about 30kb
30Kb will be more than enough I think yes.