The do-release-ugprade will cause a system upgrade to occur, Ubuntu allows the following upgrades
one release to the next (eg. 20.04 to 20.10), where this release is EOL (as 20.10 is), it'll allow you to upgrade to the next non-LTS in the same cycle; currently that's 21.10
one LTS release to the next LTS release (eg. 20.04 to 22.04 after 22.04.1 has been released)
FYI: Release cycles end with the LTS, but start with the first non-LTS after the prior LTS. ie. the cycle that ended with 20.04 started with 18.10, and the 22.04 cycle started with 20.10.
You use the -d option to upgrade before the release process has been formally opened.
How does it work.
Ubuntu release upgrades tools use by default the following file to ascertain what upgrades are possible - https://changelogs.ubuntu.com/meta-release
The -d option when used, causes the following file to be used instead - https://changelogs.ubuntu.com/meta-release-development ie. it'll currently allow an upgrade from 20.04 or 21.10 to Ubuntu jammy (which will be Ubuntu 22.04 LTS on release) to occur, when currently it's not offered/available (according to the standard file)
Even after the release of Ubuntu 22.04 LTS, this will only cause the offer of upgrade to be offered to Ubuntu 21.10 users, with Ubuntu 20.04 LTS users still needing to use the -d option to upgrade to 22.04. Ubuntu 20.04 LTS users will get offered the upgrade to Ubuntu 22.04 LTS only after the release of Ubuntu 22.04.1 LTS.
Please note: The release of Ubuntu 22.04 LTS does not cause any upgrades to be offered, as those files are changed only when deemed the upgrade path is stable for existing users. The Ubuntu Release Team discuss this regularly and decide from reports, when this is done, thus why the use of after is prominent in the documentation on when this occurs. Releases always occur on a Thursday, with the meta file changes usually first being discussed early the subsequent week.