Neither man nor info page provide more information on this than:
mount --no-canonicalizeDon't canonicalize paths. The mount command canonicalizes all paths (from command line or fstab) and stores canonicalized paths to the /etc/mtab file. This option can be used together with the -f flag for already canonicalized absolut paths.
In connection with fuse, I found that it was introduced to Linux Kernel 2.8.5 to prevent … local users to bypass intended access restrictions and unmount arbitrary directories via a symlink attack [→ source].
Question: What is mount --no-canonicalize actually used for? Was this just a security issue or what else is this option used for?
As I'm quite limited in my settings here, I was just able to mount USB Flash Drives with and without this option, with the exact same output in /etc/mtab and when using mount --show-labelsin the minutest detail. This might be different with other file systems.
Update 1: umount also provides this option, where both man and info page tells one
--no-canonicalizeDon't canonicalize paths. For more details about this option see the mount(8) man page