velocity equals the speed at which the keys are struck (how quickly the key moves from its at rest position to the bottom). A slow key strike would have a very low velocity number; a fast strike would go from the rest position quickly to the bottom. That's what it is used for. Take a piano, a slow key strike would have a different timbre and resonance of the strings vs. a fast key strike, where there would tend to be more reverberation and resonance of the strings.
Some manufacturers also equate velocity to 'force'. a fast hit is also equated to how hard the key is hit; since they can't measure actual force the assumption is made that if you hit the key with fast velocity you have also had to apply more force to the key. This may or may not necessarily be true however since force can't be measured and there probably is 'some' correlation between speed and force often times the simulated behavior of speed is used as a related trigger to what force does. Going back to the piano example; if you struck a key with a lot of 'force' the sound you hear, the loudness you hear, the sustain of that note is much different than if you were to strike the key with a low level of force. Since force isn't measured but velocity is, many manufacturers will use the velocity measurement and apply it as if it were a 'force' measurement.