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The first suggestion (in the spirit of the thread) would be RTFM. Seriously, the help for the function does answer some of your questions.
Basically, the point is this: Has this code been executed since the last time I started running the top level VI? (if there are 2 top level VIs, it's the first one that runs the subVI).
You can see the effects nicely if you use a LV2 global with First Call? (for initialization). If you run the global yourself, First Call will be true every time. If you call it in your code, it will be true only the first time it's called.