The purpose, example of data and more extra are described on http://hub.qgis.org/wiki/toporobot-importer/Wiki.
Here are only the parameters described.
Toporobot / Limelight is a software for managing cave surveys. It exports its data in a well known text file. This text file is expected to have a Mac-Roman encoding. Alternatively, use only latin characters. Known limitation: the left/right/top/bottom are expected to be in meter. Select the .Text file of the cave you want to import. It's of course mandatory for the import.
As the plug-in doesn't compute the coordinates (and loop closing), it takes already computed coordinates. The coordinate are read from a coordinate file from Toporobot / Limelight. To generate this file, open your cave in Limelight and go to the menu File > List > Coordinates and make sure "Coordinates" is checked. In the plug-in, select the .Coord file of the cave you want to import. It's mandatory for the import.
Importing hundreds of file would be boring. To avoid this, you can merge a lot of files so as to compute the coordinates and import the whole. By specifying the merge's mapping file (.csv file), the original file name and serie number can be retrieved as of before the merge. The merge tool haven't been published yet. On the meantime, contact the author to get it.
You can select a raster layer which is a "digital elevation model" (DEM). If given, the plug-in will get elevation of the surface above each survey point and compute the vertical depth. The depth can then be used to nicely color the map and/or to know how deep to dig ;-).
Several sorts of shapefiles (.shp) can be generated. Choose at least one, otherwise you'll get no result. The texts and icons (and the knowledge of Toporobot) should make clear what will be generated.
If the output file doesn't exist, don't matter. If the output file does already exist, choose if the existing shapes should be deleted or kept. Choose "Overriding" if you want to replace all the existing shapes with your new cave. Choose "Appending" if you want to add some (or one) more caves to the shapefile. By appending, don't mix the ouput types (points with lines for example).
Surely you would like to see straightaway your cave on the GIS. Then let this option checked. Don't worry if the shapefile is already shown. Un-check if you are only interested in generating a shapefile (.shp). If unchecked, already shown shapefiles won't disapear from the GIS.