The one official web address for a page that can be reached several different ways.
Like telling the post office which of your three addresses is the real one, so all your mail lands in one box.
An online store had each product reachable under three category paths. Google treated them as duplicates and ranked none of them well.
Managed Search checks canonical tags as part of monthly site optimisation.
Do I need to set this myself?
Usually not. Most website platforms set it. It is worth checking after a redesign or a move to a new platform.

Every WILDCARD card exists to solve one named problem. Find yours.