Archive some e-mail using button vs the automatic archiving function

When i click to archive some e-mail it disappear from Inbox and i can find it in All messages folder (named differently, have non english naming). In program settings i see automatic archiving function that archive older messages. But how is this function related to archiving single e-mail manually. How that is beneficial? Is it only about moving outside of the Inbox folder?
I am using Gmail IMAP.

Also interested in the subject

I think this is a gmail setting. To quote from gmail help:

If you want to clean up your inbox without deleting your emails, you can archive or mute them. Your emails are moved to a label called ‘All Mail’.

  • When you archive a message : The message will return to your inbox when someone replies to it.