No, it just makes the nix command use the same nixpkgs repository your system is already using. Without it nix will constantly redownload the latest nixpkgs-unstable which is very slow. You will get slightly older software when you do something like nix run nixpkgs#blender (“old” here meaning the same version as if you had it installed on your current system), but if you just want to try something out, you probably care more about it being fast than the latest version.
And if you care about lastest stuff you’ll can just make yourself a nixpkgs-unstable registry entry with: