A URL Rewrite in Magento changes the way a URL appears in the browser. This is particularly useful for improving the readability and SEO of a URL. For example, a URL rewrite can be used to transform a long and complex URL into a shorter and more user-friendly version. It's important to note that while a URL rewrite changes the URL's appearance in the browser, it doesn't change the actual location of the resource on the server. This distinction is crucial for understanding how Magento handles URL rewrites and redirects, facilitating a more intuitive navigation structure within the store without altering the underlying server resources​​.