What is the difference between static and dynamic batching on the iPhone / Android - Does either operation work better in terms of antialiasing game objects?
As implied by Eric’s link to docs, it is related to draw calls only. I’ll copy most relevant parts below:
Unity can automatically batch moving objects into the same draw call if they share the same material.
Dynamic batching is done automatically and does not require any additional effort on your side.
Static batching, on the other hand, allows the engine to reduce draw calls for geometry of any size (provided it does not move and shares the same material). Static batching is significantly more efficient than dynamic batching. You should choose static batching as it will require less CPU power.
In order to take advantage of static batching, you need explicitly specify that certain objects are static and will not move, rotate or scale in the game. To do so, you can mark objects as static using the Static checkbox in the Inspector.