Protecting data while it's being transmitted between systems or locations. Like sending sensitive mail in armored vehicles instead of regular postal trucks.
Online banking uses encryption in transit to protect financial data as it travels between customer browsers and bank servers.
Encryption in transit is typically implemented with TLS/HTTPS. Cloud providers enable it by issuing/managing certificates (certificate managers or key vaults) and terminating or passing through TLS at edge/CDN, load balancers, API gateways, and private connectivity services.