If I'm understanding what you are asking about it's like a small (spacer - also called an exhaust ring) that to goes on the back of the prop so that there is no "gap" between the gearcase and the prop itself when it's fastened to the prop shaft.
Most props extend slightly into the gearcase so there is no disruption to the water flow going to the blades.
A number of aftermarket props may fit different makes/models so a ring is needed to "customize" that prop to the particular motor it's going on.
And yes, it's important for both performance and can possibly prevent engine damage if you experienced severe cavitation at high rpms.