I think it’s crucially important for the artist and the listener. I think concept albums work really well in this regard.
As an artist, a “concept album” kept my compositions ground and gave direction and intention.
As a listener, it gives them something to grab onto, some idea to tie things together. In what could (and usually) end up being abstract or ambient pieces, even one-word titles can impart a framework that the listener can use to prescribe their own meaning.