There's this temporary envelope mesh being created when you choose to display the projection envelope. I've tried fiddling with that before but from what I remember I didn't manage to get anything useful out of it. Not like a cage anyway. I might be wrong though.
There's the envelope, that determines projection distance, and under Transfer maps settings, you have in the last tab the option Geometry Normals or Surface Normals, aka - use cage method (averaged ray projection I believe) or don't use cage.
The cage is around us, it surrounds us and binds us together....
Actually Maya will create one when envelope distance is set to anything higher than 0, should also check display options as seen here (mesh, envelope, both), you can even move it's verts around like a regular cage before bake!
I do some baking in Maya and some in xNormal. When I'm ready to move to XN, I like to pull a duplicate of the generated cage (+any tweaks I may have needed to do to it), and also export that as an obj.
Back to the OP, the cage limits ray distance to keep bake times low. In other apps, the cage can also skew the casted ray direction, but in Maya we just use either geo or surface normals just fine. Generally you want the tightest fit without any poke-through you can. Some areas might be problematic or only a few areas poking through; it's fine to adjust the verts on the cage like Scruples says.
But does altering the envelope's geometry (editing component mode) actually alter the end results? I have a vague memory of me trying it out and coming to the conclusion that it didn't. I might be wrong though.
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Actually Maya will create one when envelope distance is set to anything higher than 0, should also check display options as seen here (mesh, envelope, both), you can even move it's verts around like a regular cage before bake!
Back to the OP, the cage limits ray distance to keep bake times low. In other apps, the cage can also skew the casted ray direction, but in Maya we just use either geo or surface normals just fine. Generally you want the tightest fit without any poke-through you can. Some areas might be problematic or only a few areas poking through; it's fine to adjust the verts on the cage like Scruples says.
It's too bad. Would have been really useful.