The #ifdef is a compile-time directive. It will cause the code between the #ifdef and the #endif to only be compiled if the project is built against the iOS 7 SDK. If you build against the iOS 6 SDK, the code won't be compiled at all.
The #ifdef would prevent compiler errors if the code inside uses symbols that are only defined in the iOS 7 SDK. In the code you posted, I'm not sure what it's doing. The setContentEdgeInsets code is valid for most iOS versions. I would think the code should check to see if self responds to setEdgesForExtendedLayout, and then call setEdgesForExtendedLayout if it does respond.