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Universal Decapping dies are used to remove primers without sizing the case. There are a few reasons for this including;
decapping black powder cases so they can be washed at the range
removing primers from crimped primer rounds that may damage some dies
removing primers before tumbling/washing so only clean brass goes in resizer
For the price and quality of the Lee it can be handy for any loader.
You would not normally remove the decapper from any sizing die unless you wanted or needed to (although with Lee Loadmaster press for pistol usually the universal decapper is run in the first station and a sizing die with no decapper is run in the second so priming can occur during sizing).
In the case of bottleneck cases the decapping rod also has an expander on it that pulls back through the case to set the case mouth size/tension. A .308 Win case might be sized down to .304" then expanded to .307" by the expander on the decapping rod when backed out of the die. This then gives the grip or neck tension on the .308" bullet that is seated.
The above is not the case on straight walled cases like most pistol rounds or .45-70 etc.
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