It can transfer BLE only devices’ data into Xiaomi Cloud, then you can gain data through Wifi network. Kind of like MQTT broker. Now HA’s approach for BLE devices is catching local BLE communication like what
miflora does. But if HA based system is far away from BLE devices since signal is weak, it is hard to get data from device itself. If we can use this built-in function then signal would not be a problem.
There are only few devices with this function supported, such as Yeelight Ceiling Light, Philips Ceiling Light, 2nd Bedside Lamp, Xiaomi Smart Camera and Yeelight AI Speaker.