we had this feature in a custom build of ue3 at a former company i worked at, and have had it integrated in custom engines i have used and it is super useful.
basically it is the ability to override any of the RGBA channels of a texture with a separate file. with the now standard use of channel packing this is a feature that really needs to be in base unreal.
so instead of hand packing an image in photoshop the user could just work on separate image files and let unreal pack it for them. its a huge boost in productivity and allows for more use of channel packing without slowing down the artist with hand packing.