"Set Home Here" vs. launch point

I am confused about the “Set Home Here” functionality in the context popup (right-click) within the Planning screen. I was incorrectly assuming that an RTL command would bring my copter back to the “home” point, but instead it brings it back to the launch point (where the copter was armed). No worries… that’s fine, I can work with that. It’s also documented here: Planning a Mission with Waypoints and Events — Copter documentation (ardupilot.org)

I also observed that without an explicit “Land” or “RTL” command in the WP mission, the copter will loiter at the last defined WP. I incorrectly thought it would return to the “home” position, i.e. where the “H” pin was, but that was not the case.

So this left me confused about what exactly “Set Home Here” does other than placing an “H” pin on the map. Does anyone know?

I mainly use it to just get a good estimate on the mission length and whatnot.