This feature would allow tabs to be renamed (like what is already allowed for pinned tabs, except for all tabs). It would make keeping track of tabs much easier, as some tabs have automatic titles that aren't great descriptions of the tab.
Essentially, if a user has a tab that has some really long title, key parts of the name that the user would use to identify the tab may be cut off, which makes it way more difficult to identify the tab. The user would instead be able to rename the tab to something shorter that wouldn't get cut off so they could easily identify it.