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Precision is designed to control the speed of movements while dragging in the viewport.
This helps to do very small changes or very big ones - you have a multiplier for that to choose whatever speed you like.
In addition you can change between object space and world space. The scale all button is nice for example for matchmovers, who wants to scale a tracker (locater) from the camera in all three axis at once.
SELECT AN OBJECT FIRST!
Source script or drag precision.mel into your viewport
choose axis (x,y,z), movement type (translate, rotate, scale, scale all) and object space or world space
Set the level of precision (decimals to change) with the slider, arrow buttons or enter a value
the hand curser indicates, that the tool is active - click and drag in the viewport
press activate tool button to use the tool again.
Display local axis helps to choose an axis
Use the entry field to offset translation or rotation by a positive or negative value