Your identification keeps some data for each person you communicate regularly with in its peer data structures.
Display is one of those. When display is off it means you are ignoring the person. You can control display using the /ignore and /unignore commands.
The /show display command tells you who you are ignoring.
- ... Technically, display is a degree value, so we could not only control ignore or highlighting levels of a person like this. One day we may want to combine the display value mathematically with the amount of importance (or trust) you give to the context in which you received a message from this person. An in-between display value would then result in this person's talk not being displayed for an unimportant chit-chat chatroom whereas it is still displayed in an important announcement forum.
See also trust, expose and notify.
The /cancel command lets you delete the entire record for a peer.
Related: