In practice
Use it for pages that must exist for users but not for search: internal search results, thank-you pages, filtered views.
The page has to stay crawlable for the tag to be read. Blocking it in robots.txt at the same time is the classic mistake that keeps it indexed forever.
Why it matters
It is the only reliable way to remove a page from results while keeping it live.
Index hygiene lifts the pages you do want ranked, because crawl attention stops going to pages that were never going to earn anything.
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