I've been out of the loop on new equipment available on truck for the last few years...I know what an engine brake is, but explain a 2 stage brake would you...
Volvo's VEB (Volvo Engine Brake) is probably a good example. Stage 1 is the exhaust brake engaging and stage 2 is the compression (or "Jake") brake engaging as well.
In Europe they sometimes couple an exhaust brake or compression brake with another retarder, either electromagnetic (like a Telma or Vioth retarder) or hydraulic (Scania Retarder or Caterpillar BrakeSaver) to get similar 2 stage effect.
In some cases, a multi stage brake oculd select how many cylinders it set engine braking on. stage 1 would be 2 cylinders, stage 2 4, and stage 3 all cylinders. I set it to high and when I need the engine brake, it's all there for me.