References the edits from the file you select and applies them to the reference node selected in the Reference Editor. Maya applies edits by matching each nodename.attribute in the edit file to the file its being applied to.
For example, you can export a reference edit for pSphere1.translateX in the scene sphere.ma. This edit is saved in the reference file as <main>:sphere_pSphere1.translateX. You can then apply this edit to the scene ball.ma so that ball:pSphere1.translateX is edited.
When you import a scene into another scene, naming conflicts occur if the nodes share the same name and parent nodes.
To resolve these naming conflicts, you can rename only nodes with the same name and parents (clashing nodes) or you can rename all nodes. You specify whether to use the filename as the prefix (the default) or to create a prefix string.