It is important for making frame independent movement. Typically any character movement you take into consideration the time since the last update call.
This is to ensure that your game behaves the same across devices of various performance. If you move a character by 1 pixel every frame then on a device that runs at 60fps the character will move twice as fast as on a device that gets 30fps.
By affecting all movement code for example by the delta time you ensure that all devices will behave the same.
It is simple to make movement frame rate independent. Something like multiplying a movement vector by deltaTime will achieve this.