A 'spatial transform' entry in the run-time LDT configure (e.g., ldt.config) file allows the user to specify how a parameter file can be 'transformed' or translated from its 'native' or original projection and resolution to the designated LIS target grid projection and resolution.
For example, you want to upscale your 0.01°, lat-lon grid landcover file to a 0.25°, lat-lon grid map. You can select 'tile' as the entry for the 'Landcover spatial transform:' option, and LDT will aggregate the landcover pixels to tile layers (i.e., fraction of each landcover type) within each 0.25° output gridcell. If you were to select 'mode' instead here, a value of "1" would be assigned to the most dominant vegetation layer, representing 100% coverage. Since landcover is a discrete data type, you would not want to select interpolation methods, like 'bilinear', or upscaling option, 'average' (or you would end up with a landcover type of 4.331!).
For a downscaling example, you could have a 1.0°, lat-lon grid albedo map and you want to run on a 0.25°, lat-lon output grid. You could select 'bilinear' for interpolating the coarser albedo parameter map to the finer scale 0.25° map.