The external preview is useful if you want to edit your topic and simultaneously view what your topic is going to look like. This window is external as to allow you to arrange it on your desktop side by side with your application or ideally on a dual monitor setup.

In the example above I placed the preview below the main Help Builder window for this screen shot. Normally you probably want to place it along side Help Builder or onto a second monitor.
The Preview Window stays active until you uncheck the External Preview button on the toolbar. If you close the Browser window it will reactivate next time you refresh the topic.
By pressing Ctrl-S while editing frequently you can immediately and in real time see what you topic will look like.