The Paste Remembers Layers command affects how objects pasted from other locations interact with existing layers:
If the Paste Remembers Layers command is selected, objects cut or copied from different layers retain their layer assignments when pasted to the new page or position. If you paste objects to a document that doesn’t have the same layers as the document from which they were copied, InDesign adds the objects’ layer names to the Layers panel in the second document, and pastes each object on its layer.
If the Paste Remembers Layers command is deselected, objects cut or copied from different layers are pasted together on the target layer.