Purpose:
Determining if an area is level, or nearly so, by marking a reference point while sighting through the device with the bubble centered. Once the reference point is established, move to different points in the area to be checked and sight at the reference point. The diffenence between the reference point and the point the crosshairs indicate is how far from level the point you are standing on differs.
You can use it to measure slope, too, but it is more involved. That involves measuring distances and trigonometric calculations.