It's for having the same entity object INSTANCE with the same entity data in a given context. In some situations it can be handy to have a single instance of an entity, related to a semantical context. You can have multiple semantical contexts in a single application, and can assure an instance is always the same instance through a context object.
You can use the context to pass a 'context' to a routine which will for example fetch entities again, though can use teh context to grab the same instances as they're used by the caller and therefore work with the same instance as the caller(which for example bound the instance to a set of controls).