According to Jawbone, LiveAudio "enables a spatial listening experience previously only available through headphones for binaural recordings." It's a processing feature that applies crosstalk cancellation features to produce better and deeper imaging, letting artists better create emotional connections with their audience, the company says.
In reality, LiveAudio is a processing feature that seems to boost the high end of the Jambox. Since higher frequencies are easier to locate directionally than lower frequencies (bass), this boost can give the impression of better spatial imaging, especially when used with close walls on either side to reflect the noise. LiveAudio won't necessarily improve your listening experience, but depending on the music you play and the dimensions of the room where you listen to it, it could offer a chance you might find preferable.