As soon as you add this to functions.php, when you enter in adress bar and hit enter from www.example.com/login/ web browser goes to www.example.com/wp-login/
It may be more convenient way for developer, and, for example, may be useful to make links for different languages content in some cases.
add_action( 'init', 'new_url_rewrite' );
function new_url_rewrite()
{
add_rewrite_rule( 'login/?$', 'wp-login.php', 'top' );
}