It's to support correlated subqueries like this:
select *
from test1 t1
where t1.firstname1 in (select t2.firstname2 from test2 t2 where t2.firstname2 = t1.firstname1)
and is equivalent to this:
select *
from test1 t1
where t1.firstname1 in (select t1.firstname1 from test2 t2)
For fast, accurate and documented assistance in answering your questions, please read this article.
Understanding and using APPLY, (I) and (II) Paul White
Hidden RBAR: Triangular Joins / The "Numbers" or "Tally" Table: What it is and how it replaces a loop Jeff Moden