As far as I can tell, this was only supported by IRIX's C compiler. I can't even find a solid reference as to what it was used for. Since it doesn't do anything with GCC, its definitely safe to remove it.
A little more detail, it was used to disable optimization on routines that were larger than the "Olimit". This limit is to make it so the amount of time doing optimization is limited. If you specify 0 for the Olimit, it means an "infinite Olimit" and will optimization every routine. Here's a man page for MIPSpro: http://cimss.ssec.wisc.edu/~gumley/modis/old/mips_64.pdf