This effect alters your audio to produce an odd techno-space-age swooshing kind of sound. The best way to learn about Flange is to experiment with it -- remember that unwanted changes can be undone with Control-Z.
In practice, Flange works somewhat similarly to Echo -- the original sound is mixed with a delayed version of the same sound. But the delay is extremely small (Maximum Delay has a 6ms default), and it keeps changing -- 0ms, then 6ms, then 0ms, then 6ms, etc.
Options
Maximum Delay - controls the maximum amount of delay used by the flange effect. Experiment for best results.
Delay Step - controls the rate at which the delay changes in time. Experiment for best results.
Stereo Options - if the wave file is in stereo, you may select which channel(s) to apply the flange effect to.