How does it work: "Template under upload menu in a document library"

[dhoyek]

In SharePoint Online, once I activate Document Set feature, and add content type to a document library, there is a new menu added in the document library called Template under the upload menu.

Can anyone please explain what is it for and how does it work?

Thank you,

Dany.

[#2]

@dhoyek 

Please follow this url : https://www.webucator.com/tutorial/advanced-microsoft-sharepoint/document-sets.cfm

[#3]

@SachinThe article explain how to configure document sets but does not explain what does the menu Template does.

Thank you.