In vuejs there is the vue compile global api method that can be used to compile a template string into an object that will contain a render function of that template in string form. The render function of the object that is returned by the Vue compile method can then be used as the render option of a vuejs instance.
A basic example of the vue compile method might be to just call the vue compile method and bass a simple template string that makes use of a value that will be in a data object when used with a vue instance. The result of calling the vue compile method will be an object that will contain a render function as one of its arguments. The render function of the object can then be referenced to in a vuejs instance.
So this might be yet another basic example of what compile can be used for but I get the baic idea at least. If I have a template string in an external module and I want to create a render function from that string one way to do so would be to use the vue compile method.
Once a developer has a good grasp of render functions, templates and the compile global method they then have a good grasp on how to go about creating a view to be used with a vuejs project.