This is a means of creating a new text file. As is often the case with the Windows environment, it has become bloated by having several alternative methods for achieving the same result. If you are not careful, this can lead to sloppy coding and some very difficult to maintain systems.
It is highly recommended that you choose only one of the several available techniques where there are alternatives and apply that wherever you can. It is likely you'll find one of the other ways of creating new files more appropriate and you should be able to ignore this method most of the time.