At my work, we have a very big system that runs on many PCs at the same time, with very big tables with hundreds of thousands of rows, and sometimes many millions of rows.
When you make a SELECT on a very big table, let's say you want to know every transaction a user has made in the past 10 years, and the primary key of the table is not built in an efficient way, the query might take several minutes to run.
Then, our application might me running on many user's PCs at the same time, accessing the same database. So if someone tries to insert into the table that the other SELECT is reading (in pages that SQL is trying to read), then a LOCK can occur and the two transactions block each other.
We had to add a "NO LOCK" to our SELECT statement, because it was a huge SELECT on a table that is used a lot by a lot of users at the same time and we had LOCKS all the time.
I don't know if my example is clear enough? This is a real life example.