Best Practices for Cached Queries

I’m not quite clear on how cached queries work, and I have a question about best practices that the community could answer.

I have a mega menu that queries a custom taxonomy assigned to a CPT. It’s a nested query. I’m wondering if it makes sense to cache that query since the navigation elements infrequently change.

Also, in what situations might I enable cached query loops?

cc:@charaf @timmse