This relation will find listings where the value of a custom field matches the title of the current listing.
To illustrate how you can use this relation, lets say you have a directory of resorts for tourism. For each resort you have also a country custom field. Then you also have a category for country listings where you provide an overview for each country.
If the country listing title matches the options in your country custom field, you can use this relation to show the resorts for a country directly in the country custom field.
You can achieve the same results using Matching Field Values and the Related Listing Field relations. It all comes down to how you setup your custom fields and your own preferences.
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