I'm not a expert, but I did stay in our motorhome last night, so here goes.
Octane, is used to control detonation in high compression engines. It serves to slow the combustion of the fuel in the high compression engine. It can eliminate the knock or ping heard during heavy/hard acceleration. That knock or ping is detonation, it can be very harmful to a engine if it's heavy or continuous. The most common result of to much detonation is a hole in the piston. Not good. So we want to control detonation, hence the higher octane.
That said, it serves to reason that unnecessarily high octane will result in lower performance, and less miles per gallon. If your engine doesn't need it ie: most engines mass produced today. You are not only wasting your money on the higher price, you are also losing miles per gallon. Not real noticeable but real facts none the less. It does you no good unless you need it to control detonation.
That said, the ethanol that they are putting in our fuel today is supposed to serve two purposes. The claim that it reduces pollution is the main purpose. The other purpose is to increase the octane rating of gasoline. It doesn't burn as good or as fast, nor does it have as much heat as gasoline, so it serves the purpose of raising the octane rating very well. With those facts in mind, how can it actually reduce pollution when it requires more fuel to equal the heat output/power of pure gasoline?
Reformulated gasoline that has been oxygenated with ethanol is the only "BIO Blend" of gasoline that I know of. Ethanol is not good for engines. It is hard on the rubber parts, attracts water and doesn't store well. As you might be able to tell I am not a fan of ethanol in our gasoline. I know it does quite a bit of harm particularly to small engines. I use the higher (91) octane (the only gasoline without ethanol available around here) for all my small engines and boats to avoid the problems I have experienced with ethanol blended fuel.
All of that said, the lower octane (85) fuel you see in the mountains is because of the altitude. Thinner air with less oxygen doesn't let the fuel burn as efficiently so you need a more volatile fuel to get the same performance (power and MPG) as at lower elevations.
Use the lower octane if your going up to the high country, higher octane for the low lands.