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Call it on an element and it replaces the content of that element with the text "Loading" and then dots. The dots start at zero and add themselves (up to your specified limit) and then start over. It's just a simple design pattern to let a user know something is happening.
It could be used right before an AJAX call, for example.
$("#randomArea").Loadingdotdotdot({ "speed": 400, "maxDots": 4 });
Calling the plugin starts an interval. To clean that up (like after your successful AJAX call or whatever), call it again like this:
$("#randomArea").Loadingdotdotdot("Stop");