Very simply, it changes the Vector3's magnitude to 1, without changing the angle.
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With 'magnitude' meaning the length or size, if you didn't know, block.Perci14988— 9y
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why would it be important to change magnitude to 1:oBlockeus68— 9y
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For when you only care about the direction, mainly. It's a normalization, meaning you can multiply the resulting vector by a *new* length and it will just work, rather than having to find some ratio to multiply by to get from the existing length to the new one. Here's a short paper on why its useful in more 'pure' math: http://www.anselm.edu/internet/physics/cbphysics/downloadsi/unitvectors.pdfadark5487— 9y