Back stop for short lengths in a chuck so you can machine to length easily. Very useful if you need a number of parts turning to the same length. I put a collet in the spindle and put a length of pipe or tube in the collet to do the same thing.
First reply (Mr. Hollowpoint) and others were correct. I've got quite a few parts to make from short pieces of 1/2" square stock. This gives me a back stop and a support for small stuff. And it also helps with centering. Very handy!