You mean between nut and tuners? That's usually to avoid the little portions of string up there to ring - which sometimes would also be transported to your pickups through neck and body, causing different but also somewhat related effects.
But there's also players actively dampening their strings in the lower area of the fretboard, most notably those into two hand tapping, simply because when going for that, proper open string muting becomes incredibly difficult.
Whatever, when playing distorted lines, the rule of thumb would be to make sure that there's *never* any other note ringing but the one you want to play. Yes, there's tons of exceptions, and yes, you may explicitely want some of that intermodulation, but in general, you want clean lines. And for those, proper damping/muting technique is paramount.