Flow control is used to control the amount of frames that are sent over a link. It's used in scenarios where dropping a frame is a worse outcome than telling the sender to wait before sending. Most commonly it's seen in FCOE deployments and sometimes in iSCSI deployments because dropping storage packets can be problematic.
The 'desired' setting just means that the switch is open to the other side sending flow control packets but won't require it, nor send flow control packets unless the other side first initiates.
Meraki switches don't support flow control. You can check whether flow control is actually in use on the Catalyst interface by running "show interface x/y flow-control detail" (or a similar command) to see if pause frames are actually being seen.