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Cages can be found in both Croc: Legend of the Gobbos and Croc 2 with very similar functions. They can only be unlocked using a silver key in Croc 1 and a key in Croc 2.
Cages hold a variety of objects, including Baby Gobbos.
Trivia
In Croc: Legend of the Gobbos, King Rufus is seen locked in a Cage, but instead of needing a silver Key to unlock, Croc merely tail-attacks it to free Rufus after defeating Baron Dante. This is the only instance where a key is not required to unlock a cage.