There is a pulldown menu next to the theme pulldown; its hover text reads “associated activity or fragment providing context”.
This (new) widget is not described (or shown) in the graphical layout editor documentation.
I assume that this is an activity or fragment that typically displays this view. But what does the layout editor do with this information? Can it somehow be used to preview action bar customizations?

The Android tools blog documented it as follows:
I noticed after changing this value, a new
tools:contextattribute was added to the top-level element in the XML, which led me to this related question and answer. I’ve also entered a documentation bug report requesting that it be included in the documentation.