Is this a Rio Indicator leader?
If so, it's meant for standard indicator rigs. (Thingamabobbers, yarn indicators, float and peg, etc.)
The idea is that the butt is heavy so that you can mend the length above your indicator, and the front part of the leader is long and relatively fine to aid your flies in sinking. The color is to aid in strike detection and managing your drift.
The concept works well IMO, but I don't think there really is a need to buy a pre-packaged leader to achieve this effect. A butt made of 4ft of 20-25lb mono connected to a 4ft+ of 2-3x will give you the same result. But to each his own, some people will likely want to buy the knotless Rio product.