According to the mount.ntfs-3g(8)
manual page:
This option enables creating new transparently compressed files in directories marked for compression. A directory is marked for compression by setting the bit 11 (value 0x00000800) in its Windows attribute. In such a directory, new files are created compressed and new subdirectories are themselves marked for compression. The option and the flag have no effect on existing files.
The compression
option merely enables support for compression. You will still have to mark the individual directories as compressed in order for this to have any effect.
Even without this filesystem option, existing compressed files can still be read and modified.