What the high contrast test shows
A display with full-array local dimming has to decide, block by block, how bright to run the backlight behind each region. This pattern gives it the hardest possible problem — bright and dark adjacent everywhere — and the result tells you a great deal about how it behaves.
Blooming is the halo of light spilling from a white block into the black around it. Some is inevitable; a lot means few dimming zones. On an OLED there should be essentially none, because each pixel makes its own light.
What to look for
Watch the moment the pattern appears: on a display with local dimming you can often see the backlight settle over a second or so. Then look at the boundaries between blocks for halos, and at the black squares for how black they really are.
Change the block size. Small blocks are much harder for a dimming system than large ones, and the point at which blooming becomes obvious tells you roughly how coarse the zones are.