It's a useful feature, if handled with caution.
Generally what happens is that after pairing a Bluetooth device, Andorid pops up a notification asking if you want to use it's presence for Smart Lock.
There's a potential PEBKAC where you don't know what 'smart lock' means, and assume this is another stage of the process of, say, setting up the connection to your shiny new PE watch.
(It's an Android feature, and completely agnostic of the Bluetooth device in question. It can be a keyboard, a desktop computer, a head torch, a smart watch, an audio system, or whatever.)