It does what it says...but in a badly designed way. If OpenDNS Updater is running on a laptop and you use your laptop on another network (coffee shop, hotel), it will naturally update the IP address to log the one you are now on, which is not your own network, so your OpenDNS stats will now include the traffic of everyone else in the building instead of back home where your family still needs the protection and logging. Yet the software has no way to prevent this. At the very least it should display a notification/confirmation (is this your ISP changing the IP address, or did you move to a network OpenDNS should not intervene in?).
Also, it automatically adds itself to your Login Items, so it will launch on login even in cases where you don't want it to (e.g. away from home). And if you remove it from Login Items it will add itself back. This makes it hard to avoid OpenDNS from switching the IP address to log and filter when you are away from the home network you want to filter.
Other menu bar applications have preferences to control auto loading, and will respect your setting. Until OpenDNS Updater improves, it's hard to give it more than two stars, because using Version 3 is only slightly better than not using it.