An alias allows you to reference a note with a particular name, but display it in Preview with a different name.
E.g. if I have the note ‘Ireland ’ but want to abbreviate it to ‘IE’ in a note, I can wrote
[[Ireland|IE]]
and it will appear as ‘IE’ in preview mode but will link to my note ‘Ireland’.
There is also a way of doing this via YAML frontmatter, for more on that see this help page:
https://help.obsidian.md/How+to/Add+aliases+to+note