Can someone explain the new Bluetooth Classification in 7.4?

[Gator5000e]

The notes say that this is new to the Apple Watch in WatchOS 7.4

"Option to classify Bluetooth device type in Settings for correct identification of headphones for audio notifications"

I don't understand what this does. Can someone explain it for this simple mind?

Thanks.

 

[firewire9000]

You go to the Bluetooth settings in your watch select the device, tap on the I with the circle, and assign the type of the device.