Hi Jay,
It is a mechanism that flags for the UI that the object is currently being processed. It should be cleared on the way out of the transaction manager. If you look at the queues screen as an admin you should see some data queue'd up for processing (there is I think, a 10s cache on that screen, but otherwise you can refresh to reassure yourself that things are actively being worked on).
Typically, unless you harvested a huge amount of data, systems like ReDBox and Mint should clear any backlog pretty quickly. If the flag has not been cleared after a while, that would probably indicate that the queues are not progressing for some reason, or the flag was incorrectly left 'on' as it left the queue, either of which would indicate a problem.
In the fascinator platform the flag is typically more useful on long running transformations, such as media transcoding, where a single item may take an hour or more to render.
Ta,
Greg