Question about shelving/unshelving in TFS

Shelving has many uses. The main ones are:

1. Context Switching: Saving the work on your current task so you can switch to another high priority task. Say you're working on a new feature, minding your own business, when your boss runs in and says "Ahhh! Bug Bug Bug!" and you have to drop your current changes on the feature and go fix the bug. You can shelve your work on the feature, fix the bug, then come back and unshelve to work on your changes later.
2. Sharing Changesets: If you want to share a changeset of code without checking it in, you can make it easy for others to access by shelving it. This could be used when you are passing an incomplete task to someone else (poor soul) or if you have some sort of testing code you would never EVER check in that someone else needed to run. h/t to the other responses about using this for reviews, it is a very good idea.
3. Saving your progress: While you're working on a complex feature, you may find yourself at a 'good point' where you would like to save your progress. This is an ideal time to shelve your code. Say you are hacking up some CSS / HTML to fix rendering bugs. Usually you bang on it, iterating every possible kludge you can think up until it looks right. However, once it looks right you may want to try and go back in to cleanup your markup so that someone else may be able to understand what you did before you check it in. In this case, you can shelve the code when everything renders right, then you are free to go and refactor your markup, knowing that if you accidentally break it again, you can always go back and get your changeset.

Any other uses?

When you shelve the changes, there is a checkbox towards the bottom "Preserve pending changes locally". Uncheck that and it will undo the checkouts on the files as it builds the Shelf.

Also, once a shelf is created you can safely undo the checkouts yourself; Same result but I consider the checkbox a little safer in that it only undoes the checkout on files that you are shelving (so you won't accidentally undo the checkout of a file that you missed or intentionally didn't shelve).