I imagine the button is supposed to make it possible to surround some, well, code with formatting characters that make it display in a fixed pitch font, with spacing and such intact.
It doesn't. That's kind of a problem on a technical site, where someone might want to list commands, etc.
Without formatters...
Mary had a little lamb, little lamb,
little lamb, Mary had a little lamb
whose fleece was white as snow.
And everywhere that Mary went
Mary went, Mary went, everywhere
that Mary went
The lamb was sure to go.
With formatters around the entire thing, which in the editor looks just like the above:
Mary had a little lamb, little lamb,
little lamb, Mary had a little lamb
whose fleece was white as snow.
And everywhere that Mary went
Mary went, Mary went, everywhere
that Mary went
The lamb was sure to go.
-Noel