Your Login password is for logging in to your admin account, and also the password for your admin user.
There is no difference, it's all about allowing the full use of your system, and knowing that there are parts of your system that you may want that extra level of "safety", to maybe help you take care of your system, and make you think (however briefly) about what you are doing
In that security pref pane, where you can change that setting, you can click on the "?", which will show you a little detail.
That would be relevant if you have another user account (such as for a child, or some other user that you want to provide an account, but don't want that user to change settings that might be important for you, or even to disable parts of your system without your knowledge, etc.
And, as you have discovered, it's not really relevant when you have only one, admin user on your system, because you already know your own admin password
Additional info (some of it my own opinion): Some users suggest that you have admin account (which you already have), then add a standard user account, and use THAT account for the extra security that configuration might offer. The standard user does not have permission to do much of anything in settings, and would need to input both the account name and password of an admin account on your Mac to change those settings.
And, you will probably realize after you use your new Mac for a while, that those settings that need a password to unlock, are settings that you really don't change very often, once you discover the setup that you prefer.