My first thought was that it would generate a QR code for any string you provide, through url hacking. (i.e anything after the domain name is used as the string to encode) - This doesn't seem to be the case.
Very little instruction on the website, nothing on twitter, and no info here… Could you shed a little light please?
EDIT: As tiwilliam informed me, it uses the HTTP referer to create a QR code that contains a link back to that same HTTP referer. If it is not present, the default is lilqr.com.
It's a nice idea, but I don't see the value in having a QR code that links to the page you are already on? A bit more explanation is still necessary :)