This is an experimental option to be able to import blender into python and access its modules, importers, exporters rendering, video editing... etc.
This is mainly limited to features which can be usable in background mode, so you cant for instance do OpenGL preview renders.
This topic is from Blender Programmer ideasman42 on Blender wiki.blender.org.
Directions on how to do this for Linux, Windows, and OSX:
http://wiki.blender.org/index.php/User:Ideasman42/BlenderAsPyModule
Testing
This allows 'bpy' to be imported from python or other applications/IDE's which embed python, eg:
python -c "import bpy ; bpy.ops.render.render(write_still=True)"