There are many situations where you would want to use Layered Encryption. A couple of cases are when operating with a partner force or in a training environment.
In a Traning Scenario with instructors and students, the instructors will have two keys (instructor and student), and the students will only have one key (the student key).
This allows the students to communicate within their training scenario and know the locations of their team members. Since the instructors have the student key, they can see all the student locations and map items students broadcast in the network. Layered encryption allows the instructors to know the students’ location, but the students will not know where the instructors are because they do not have the instructor's key. The instructors could inject map items into the scenario by selecting the student key before broadcasting.
Note: Instructors need to be conscious of which encryption key they have selected and their auto-update location settings to avoid unintentionally sharing their location with students.