If you’re building out your design in sections, leveraging Padding can help you to maintain consistency in spacing between the section content and the borders. With Padding enabled, as content changes or is moved around, the padding remains consistent, saving time and energy that would have been spent on ensuring pixel perfect alignment.
A great application of Padding is with buttons. If you’re reuse a button component or group, it is likely that the button label (or text) is changing for different calls to action. Rather than adjusting the button every time the text label changes, enable padding and let XD handle that for you.