When you right-click an element in a cached reference you get two options, namely, Hide Cached Element and Copy/Hide Cached Element. Selecting Hide Cached Element hides the element or selection set from the view. Selecting Copy/Hide Cached Element copies the element or selection set into the master file and hides the cached element or selection set. You can manipulate the copied elements.

If you turn on the Display Hidden Elements From Visible Edge Cache icon in the References dialog, the hidden elements of the cached reference are displayed in blue color and the remaining elements are displayed in gray color.

If the level on which the hidden cached elements are present is turned off and if you reload the cache, the elements do not remain hidden. Now if you turn on the level and reload the reference again, the previously hidden cached elements are still displayed.