On the Sony SRF-M95 Radio that I have, from what I understand... if you have a little (local) station, and a much larger (national) station, only a couple of notches apart, and the larger station bleeds over into the smaller one ~ if you switch to local, the PLL tuner locks much more tightly onto the signal of the smaller station...
...Its only worth having if you have a lot of stations fighting for the same frequencies in your area...
If you listen to long-distance stations, it's worth having.
On many radios, such as the one in my car, it also effect the sensitivity of the seek and scan -- how strong the signal must be for the scanner to pause/stop on it.
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