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.