As I understand it it’s in essence a layering system. Meaning it’s not dissimilar to Photoshop Layers. Every light gets it’s own layer, or is grouped together with other lights on a layer. This in turn allows you to change individual design choices on a per layer basis. Show/hide layers. Have layers impact other layers, but not all layers. That kind of stuff.
In the end, after rendering, these ‘lights’ are no more than a 2D image of colored pixels, which you can now control through the light groups in compositing too.