Right now no one knows how the feature will work, but it is expected to work similarly to how the Recycle Bin works on Windows. Perhaps if you delete a file in a SkyDrive folder and it is moved to the local Windows Recycle Bin, it is moved to SkyDrive's also?
Another thing we don't know is when this feature is coming. We see hints of the feature coming, but we don't know when it is coming. It might be a while until we see this feature if it is included in the next SkyDrive update, which might take a long time depending on what Microsoft wants to do.
Either way, let me know of your thoughts in the comments below.