Hi,
It makes it so the search plugin will search in the data of the variants, not just the data of the main products. If it finds a match in a variant, it will provide the URL of the main product of the variant. If the main product doesn't have a canonical URL and the URL can be generated dynamically, it will use the id of the variant instead of the id of the main product in the URL. This can allow the system to preselect the default variant selected when reaching the product page, overriding the default variant.
This might indeed be a solution if you're using the Joomla search mechanism.
Note however that this mechanism has been removed in Joomla 4 to have instead the "smart search", which doesn't have that capability.