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The Display Templates were introduced to the Automatic Semantic Forms extension in order to visualize the created annotations.
One can associate a Display Template with a category via the "Use display template" property. Each time, you edit an instance with an automatic form, the Automatic Semantic Forms extension checks whether the direct super categories of the instance have an associated display template and then adds those Display Templates to the instance.
Note : The Use display template property is not inherited from super categories.
You can use the Display Template which has one template parameter named categories to render the created annotations in various ways such as with the parser functions and so on.
One major advantage of the Display Templates feature is the separation of the annotation creation, which is done by the SilentAnnotations parser function, and annotation rendering, which is done via Display Templates.