As Bob said, it prevents return of the 3-point's hydraulic fluid, so the lift stays up.
I've been using my 3-point backhoe a lot. It doesn't have enough ground clearance to drive over rough ground, until the 3-point is raised. So I leave the 3-point up by closing that valve for the duration of a backhoe project - sometimes several days.
If I simply raise the 3-point with the lift lever then the engine is under load all the time the 3-point is up. But after I lock that valve, I can push the lift lever forward and the engine no longer works against a load. The weight is carried by that valve, instead of needing a continual push from the hydraulic pump.