How do we use cache in SharePoint ONline
I mean at what scenario we use cache?
and where are the settings for the cache in sharepoint online?
You can refer to the document here for introduction on Using the object cache with SharePoint Online.
Also, see the last section for what you can do with no cache settings available in SharePoint Online.
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You really don't have access to any form of cache settings, though I'm not exactly sure what you're referring to given SharePoint has a variety of caches.
The one control you do have is whether or not to use the CDN. You can read more about this at https://docs.microsoft.com/en-us/microsoft-365/enterprise/use-microsoft-365-cdn-with-spo?view=o365-worldwide.
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