What is ng-transclude?

I have seen a number of questions on StackOverflow discussing ng-transclude, but none explaining in layman’s terms what it is.

The description in the documentation is as follows:

Directive that marks the insertion point for the transcluded DOM of the nearest parent directive that uses transclusion.

This is fairly confusing. Would someone be able to explain in simple terms what ng-transclude is intended to do and where it might be used?

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