Templates are used as foundations for a set of emails. They allows you to make many emails with different topics, recipients and purposes while maintaining a uniform appearance that is representative of your company.
It is a good idea to name the New Template something very clear for its purpose. For instance, if this is a Template to be used for a specific group or committee within your company, use the name of that committee. This will make it easier in the future to quickly choose the correct Template from the List Templates menu.