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First, what version of Ultra Recall are you using, Standard or Professional? The "Create logically linked items for duplicate urls" option is only available with the Pro version.
If you are using the Pro version, then enabling this option (enabled by default) will prevent duplicate url values when importing urls, creating a logical link instead of reimporting the same url if imported in a different location than the existing Info Item.
You can always manually create items with duplicate urls (it is not prevented) and Ultra Recall does not attempt to prevent duplicate titles, which it attempts to obtain from the url (other than to ensure that the default title of a new Info Item is unique from its siblings when manually inserted).
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