It’s a bit hard to explain but I think we talk about the same.
Let’s first clarify phrases:
The playback limit is the range of frames that is selected to be played when you use the animation play functions, e.g. loop forward. You can set this range in the time line. But we now just assume that all frames of the project are selected as playback limit just to make it easier to understand. But actually the light table limit will refer to the playback limit.
Now, to stay with your example, you have 10 frames (1-10). If you activate the new limit option then the light table rendering will respect upper and lower bounds of the animation. Successive light table frames that go beyond “10” will not loop to start with 1 etc. . Backward frames that go below “1” will not loop to 10 and down.