is this a more general question about how "laps" might be useful?
It's basically just a way for the computer to distinguish segments of a ride, or for stats to be computed over those segments afterwards. You can manually create them however you like while you're riding (such as if you're doing multiple laps on a single trail and you want to compare each lap, or a section of each lap, or shorter segments of a trail). You can also have the computer create them programmatically. Such as at regular time or distance intervals, or create them based on a specific location, etc. I don't know specifically all the ways that Wahoo uses them, but these are the ways I've seen them applied over the years in general.
It's generally more useful if you're racing or doing specific training than just riding. I have used this function when training (specifically when I used to run and I wanted to keep track of my pace splits per mile), but do not currently use laps. I'm not training for anything specifically, and I'm not racing, so it's not info that I'm using.