Starrett Last Word test indicator
I use this style indicator on the mill to locate and center bores relative to the quill. The one I use I leave permanently attached to a clamp setup that attaches to the quill, then I rotate the quill while sweeping the indicator inside the bore of whatever I'm locating.
But there are many many uses. Lots of people use them for inspecting finished parts on a surface plate, or getting a vise trammed on the table of your mill, or checking runout on a part you have chucked in your lathe. They're very useful for getting fine/accurate measurements.
I hope all of that makes sense.