It is a debugging tool for measuring simple network traffic.
Just as there was Retroweaver et al. for running Java 5 code with generics on Java 1.4, Retrolambda lets you run Java 8 code with lambda expressions on Java 7 or lower. It does this by transforming your Java 8 compiled bytecode so that it can run on a Java 7 runtime. After the transformation they are just a bunch of normal .class files, without adding any runtime dependencies.
Small example of AutoValue/AutoParcel + Jackson.