Sitecore CMS was not designed to work with enabled User-mode or Kernel-mode output caching in IIS and does not support its usage.
IIS Output Caching should never be enabled for the Content Management environment.
IIS Output Caching can be enabled in the Content Delivery environment, although doing so might cause various issues, such as:
If additional server-side caching for dynamic Sitecore responses is required, it is recommended to enable such caching on the proxy or load balancer side.