This can actually be a list of encoding, in case a variety of encodings where used for filenames (or content) in the same repository (see #9631).
Example:
{{{
[hg] encoding = utf-8,ucs-bom,shift-jis,gb18030,gbk,gb2312,cp936
}}}
In this changeset, we use it only in a secondary way for retrieving the filesystem path of the Mercurial repository.