In plain language
When a display disappears, Windows decides that screen is gone and moves everything on it to a remaining one. Turn the display back on and the layout does not come back. Anyone running a PC into a projector or television has met this.
HTPC mode addresses it at the HDMI level: the PC keeps seeing a display, so it never triggers the rearrangement.
Why it matters in your setup
If your source is a PC, this is the difference between a machine that behaves and one that reshuffles itself every time the projector goes to standby. If your source is a player or a console, the setting is irrelevant.
What the DR HDMI 8K does with it
HTPC mode is a switch on the DR HDMI 8K's CONFIG page. One important limitation from the manual: HTPC mode is not compatible with an HDCP signal, so it is a setting for desktop and application use rather than for protected playback. The related TX +5V force option controls the same behaviour from a different angle.
Need the hardware?
Open the DR HDMI 8K product page on HDfury.uk.