To use this functionality you need to set up the "Checklists" custom field.
This could be easily done by the JIRA Suite Utilities post function.
Setup instructions for Cloud instances: Jira Misc Workflow Extensions (JMWE) - Cloud
Setup instructions for Server instances: Jira Misc Workflow Extensions (JMWE) - Server
Atlassian documentation is available here.
Currently, JIRA Suite Utilities (JSU) team is working on porting utilities functions to JIRA Cloud directly. Hopefully, soon there will be no need for a separate add-on to manage these post-functions.
However, as at this moment installations of JSU from the add-on market are disabled, new users cannot install JIRA Suite Utilities.