Levels
Grayscale maps rarely use their full range. A roughness map from a scan might sit between 0.35 and 0.6, which makes the whole surface read as the same semi-gloss no matter what you do with it.
Pulling the black and white points in stretches that range back out and gives the material somewhere to go. It is the quickest way to make a height map read stronger before converting it, or to pull a heavy AO map back so it stops looking like dirt.
Should I use this on a color map?
You can, but albedo is usually the one map to leave alone. Baking contrast or lighting into it fights the renderer, which is adding its own lighting on top.
Do I lose anything?
Yes. Anything pushed past the black or white point is gone for good, so work from the best source you have rather than stacking passes.
Related: Rough ↔ Gloss · AO & Curvature · Height to Normal