Using the phrase conveys sensitivity towards someone's emotions by avoiding harsh truths. She spared his feelings by complimenting his effort, despite the poor result.
Pro Tip 2/3
Indirect Communication
Sometimes used to indirectly communicate criticism without being blunt. To spare her feelings, he suggested she might try a different approach next time.
Pro Tip 3/3
Cultural Sensitivity
In some cultures, it's more common to spare feelings to maintain harmony. In a collectivist culture, people often spare someone's feelings to keep group unity.