Certain cases of disk encryption require you to enter a passphrase during boot to unlock the root partition, else the system can't continue booting, because it can't get its data from disk.
Only the boot partition won't be encrypted (or is unlocked by GRUB), so the kernel and the initramfs can still be loaded. But that alone makes a very poor experience, with only BusyBox as a shell and no files to work with.
Without a Plymouth splash, the password prompt will simply be written on the TTY, e.g. something like this:
