The {} denotes a new block of scope.

Consider the following very contrived example:

switch (a)
{
    case 42:
        int x = GetSomeValue();
        return a * x;
    case 1337:
        int x = GetSomeOtherValue(); //ERROR
        return a * x;
}

You will get a compiler error because x is already defined in the scope.

Separating these to their own sub-scope will eliminate the need to declare x outside the switch statement.

switch (a)
{
    case 42: {
        int x = GetSomeValue();
        return a * x; 
    }
    case 1337: {
        int x = GetSomeOtherValue(); //OK
        return a * x; 
    }
}