You should use that function if you're displaying user-supplied data. The reason for that is you don't want them to store malicious code in your DB (e.g. some <script> code) and have it executed when you view the page.
If, on the other hand, you'd like to allow some HTML to be parsed (e.g. <b> tags or something of that nature), you could use [man]strip_tags/man and specify which tags you'd like to allow.