Datasheet view exposes list in a format that we are familiar with……Excel.  You can easily label rows and columns just like a spreadsheet as well as enter in any information you need for your list.
To create a list in Datasheet view, do the following:
Click Site Actions >> Create.
Under Custom Lists, choose Custom List in Datasheet View.
 
As usual give your list a name, description, and choose whether you would like it displayed in the Quick Launch bar.
Click Create.  SharePoint immediately takes you to your list to start entering some data.  Start entering data just as you would on a spreadsheet.
 
If you need to add a column to this list, click the Settings dropdown and choose Create Column.

  
This will take you to the Create Column screen that was discussed in previous blogs.  Simply fill in the appropriate information for your column and click OK.
If you would ever like to exit Datasheet View, go to the Actions dropdown and select Show in Standard View.  This will bring you back to the common view used to create other lists.
 
This is just another way to get data entered into SharePoint.  Choosing Standard View as opposed to Datasheet View is simply a matter of preference of the user.  Both will accomplish the same goal.