Ranges, which can be single cells or multiple cells can be named.
They can make the logic of the spreadsheet easier to understand. This is useful for the initial design and for subsequent development.
Named ranges are more robust, because if they are altered (eg extended or moved) then the formulae that refer to them are correspondingly updated.
They can be referred to when on a different sheet, where a straightforward link doesn’t work.
Their names appear in the prompt list as a formula is typed, reducing error and simplifying selection.
Named ranges can be general (that is, across the entire workbook (the default) or specific to a particular sheet.
(This also a potential for problems, so it’s best to use the workbook-wide names only).