Its a way to see what is being uploaded or what might have failed to reach the servers.
It lets you know if a document failed to upload for some reason.
In this case it looks like the incorrect credentials were entered when signing into Windows Live.
press the Resolve button to get a list of actions you could take to get things corrected.
you might pull up the Upload Center from the icon which appears on the System Tray when uploading documents.
Right-grab the icon to control notifications, pause uploads, and access its configs.