It's not just used with ovendishes. Many times they use it when cooking something on the stovetop, certainly when braising stuff in a little butter and very few liquid. I've seen it done with a series of vegetables prepared on the stove top in a little butter and a ladle of stock. It keeps the preparation moist without too fast evaporation, which could result in a too concentrated taste. The liquid and the butter create some sort of delicious emulsion.
It's also used when poaching stuff like whole pears in wine. The fruit will always float on top with the same side upward. To prevent uneven cooking of the pears, a cartouche is placed on top.
And, also true is that many pots in pro kitchens don't even have a lid...