In colonies of feral cats, subordinate individuals cover up their feces, while dominant stray cats leave waste uncovered in conspicuous spots. Most indoor cats bury their waste, probably because they feel subordinate to their human family. However, in multicat households, the dominant cat will sometimes leave feces uncovered to announce his presence and status. Uncovered feces means the territory is taken.
In the wild, cats cover their feces to prevent attracting attention of predators. Burying feces reduces odors and this might be an important factor for the survival of the weaker individual that does not want to advertise his or her presence to others.