The Shadow space (also sometimes called Spill space or Home space) is 32 bytes above the return address which the called function owns (and can use as scratch space), below stack args if any. The caller has to reserve space for their callee’s shadow space before running a call instruction.
It is meant to be used to make debugging x64 easier.
Recall that the first 4 parameters are passed in registers. If you break into the debugger and inspect the call stack for a thread, you won’t be able to see any parameters passed to functions. The values stored in registers are transient and cannot be reconstructed when moving up the call stack.
This is where the Home space comes into play: It can be used by compilers to leave a copy of the register values on the stack for later inspection in the debugger. This usually happens for unoptimized builds. When optimizations are enabled, however, compilers generally treat the Home space as available for scratch use. No copies are left on the stack, and debugging a crash dump turns into a nightmare.
Challenges of Debugging Optimized x64 Code offers in-depth information on the issue.