I found this property key is documented in the API, see Jira 6.4.8 API Constant Values. However that doc doesn't tell you details about values or purpose. I believe it refers to the type of install package used when installing this Jira. When you install Jira in current versions you could have selected any of the following packages:
Each of those links go to full installation packages for those products (not just plugins .jar/.obr packages that can added via Marketplace to an existing Jira install).
This property just denotes which installation type you selected. In this case, the value of "DEVELOPMENT" is referring to the Jira Software package. Since it is primarily geared toward software development projects. I know that SERVICEDESK is another commonly seen key there.
However you could have a Jira installation that has both Software and Service Desk installed, so the key isn't always a good way to tell what is currently installed and/or licensed. I think it is there just to help identify which of the installation packages were used during the initial setup of Jira.
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