Creating a nested list allows you to create a list with nested submenus. The C1ListViewNestedItem's visual style resembles a regular C1ListViewLinkItem; it's a button item with a right-facing arrow at the right side of the item. You can see this in items One and Five in the image below.
When you click or tap one of the nested list items, the control will show a new page populated with the title of the upper layer in the header and a list of the child elements.