This special remote type stores file contents in directory.
One use case for this would be if you have a removable drive that you want to use it to sneakernet files between systems (possibly with encrypted contents). Just set up both systems to use the drive's mountpoint as a directory remote.
Setup example:
# git annex initremote usbdrive type=directory directory=/media/usbdrive/ encryption=none
# git annex describe usbdrive "usb drive on /media/usbdrive/"