You can obviously place UI components within the Canvas and place them (if you wish), but there are those situations where you need to be able to either group or order elements together, such as:
A list box
A grid
A scrollable area
In the legacy GUI system, this was done with separate controls that had layout options built-in. For the new Unity UI however, this has been broken up into a more component-based system with new grouping components, these can be attached to any GameObject to organize the elements attached to that GameObject as children.
The types of groups you can create are:
Horizontal Layout Groups
Vertical Layout Groups
Grid Layout Groups
Note
Groups don't have to be static top level elements; like with anything else in the new system, everything is flexible. Want a Horizontal Layout Group within a Vertical Layout Group within a Grid Layout Group, then knock yourself out, as there are no limitations (well other than common sense, it still has to look...