More info, if you were curious.
You can check the option, but there's no clear way to tell if it's working. The "compression ratio" column shows values for tapes, but it always blank on backup to disk media. The best way I've foudn to extimate your actual compression is to make a new B2D file and don't pre-allocate. Thus the file size will be the amout of data written to disk. Run a backup job to it, and compare the file size vs the job totals.
In my informal tests, B2D compression is about the same as tape compression.