The path to it is set by default, but in Preferences you can alter the path (if you wanted to). The data in it are the drawn wave file images for project audio.
If the contents of the Picture Cache are deleted, Sonar will recreate the drawn representations of wav data as needed. Lots of folks clear out the Picture Cache when their playback scrolling starts to lose its smoothness.
The Picture Cache can end up with a lot of data in it - if lots of audio clips are made and then discarded - their drawn waveform data still remains in the Picture Cache.
Bob Bone