Saw this option when I made a linked server
Basically it just enables you to improve performance for remote tables by not requesting meta data for each request, only when data is actually needed from the tables.
Lazy Schema Validation:
If this option is set to false, the default value, SQL Server checks for schema changes that have occurred since compilation in remote tables. This check occurs before query execution. If there is a change in the schema, SQL Server recompiles the query with the new schema.
If this option is set to true, schema checking of remote tables is delayed until execution. This can cause a distributed query to fail with an error if the schema of a remote table has changed between query compilation and execution.
http://msdn.microsoft.com/en-us/library/ms190918.aspx
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