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Reference Library is a great way to compare color corrections from shot to shot, different treatments, or load in reference stills to emulate a certain Look you are going after.
To open the Reference Library, click on the triangle located at the top of your preview pane. When you open the Reference library for the first time the reference library will be empty. You can add reference images in two ways. The first way is to click on the Snapshot icon to take a snapshot of your current preview image and it's current Look. The second way is to click on the "+" icon and import images from your hard drive.
If you ever want to delete a reference still or the entire Reference library, right click on a still in the Reference Library and choose "Delete" or "Delete All".
By clicking on a reference still, you'll load it into the preview pane. You'll see a 50/50 split between the image you were editing and the loaded reference still. Your current clip will be loaded on the left and your reference still will be loaded on the right. You can drag the yellow arrow underneath your preview to show more or less of the reference still. In order to remove the reference still from your preview, open the reference library and click once more on the selected image.