Telling the Server the IP Addresses and names of other computers on the local network (LAN) allows the DNS service which runs on the Server to answer Domain Name (DNS) queries about those computers.
When one computer tries to access another computer on the LAN using TCP/IP, it will first ask the DNS service running on the Server what the destination IP address is. If the destination computer is unknown to the Server, which might be the case with another server, this can cause the DNS to instigate a dial to the Internet in an attempt to answer the query. Placing an entry in the table of 'Other Computers on the Network' will cure this problem.
Entries should only be made for computers that are on your LAN, or a
subnet
of your LAN.