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To elaborate:
calibre's internal bookkeeping requires that filenames be stored in (transliterated) Latin1, for maximum compatibility across OSes and filesystems. As BetterRed mentioned, this is non-negotiable.
The setting you refer to under Save-to-Disk will only affect files exported from calibre. With that option unchecked, calibre will attempt to save them according to whatever you define in your export template, without performing any transliteration and only transforming filename-unsafe characters (that is, \/:*?"<>| and a trailing period).
This assumes your filesystem can handle it -- these days, most can.
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