In the back-up selection menu, you can load a back-up of an item set on your computer. If you have a single item set called damage_source_test, it should look like this:

When you click on the name of an item set, all of its back-ups should be shown on the right, which should look like this:

In the list on the right, you can see which back-ups of your item set are available. The timestamps show when that particular back-up was made. By clicking the corresponding Load button, you can load the corresponding back-up. When you load a back-up, you can make changes to your items (just like when you edit an item set). If you Save or Export, the back-up version will become your 'default' version.

Whenever you save an item set with the editor, it will automatically create a back-up for the item set you're saving as well. Old back-ups will automatically be removed after some time. More precisely:

The back-up system has 2 purposes:

I must admit that the latter case was my primary motivation for adding this back-up system.

Note: all these automatic back-ups are stored on YOUR computer, so they won't help you if your entire disk gets corrupted. If you want to protect your content from being lost when your disk is damaged, you should copy your .cisb file to some service like Onedrive or Dropbox.