Your idea of "what is" the inverse image is correct. Given a function $f: A \to B$, the inverse image $f^{-1}(C)$ of some subset $C \subset B$ is the set of all points in $A$ which are mapped to the points in $C$ by the function $f$. You ask about the "purpose" of this. Well the point is: how you use this really depends on the context, this is just a convenient definition to speak about something that you'll need very often.
It's very common to speak about the subset of $A$ which is mapped to a certain subset of $B$, however it would get clumsy and tedious if every single time you would need to say: given the subset $C$ of $B$ let's consider the subset of $A$ which is mapped to $C$ by $f$. So, to make this simpler and to have an unified language you just say: given the inverse image $f^{-1}(C)$ and it'll be understood what you're saying.
Perhaps you want some examples on where this is used. Consider the circle of radius $r$ centered at the origin: $x^2+y^2=r^2$. Then if we define the function $f: \mathbb{R}^2 \to \mathbb{R}$ given by $f(x,y)=x^2+y^2-r^2$ then the circle is the set of points which are mapped to $0$ by $f$, in other words, the circle is $f^{-1}(\{0\})$. Also, when we talk about the inverse image of a set composed by just one element, we forget about set notation and just write $f^{-1}(0)$.
Also, the ellipsoid $(x/a)^2+(y/b)^2+(z/c)^2=1$ can be described using the function $f : \mathbb{R}^3 \to \mathbb{R}$ given by $f(x,y,z)=(x/a)^2+(y/b)^2+(z/c)^2-1$ so that it'll be the inverse image $f^{-1}(0)$.
A theorem then in differential geometry will grant that these objects are regular surfaces because that they can be described in this way. These are just two examples in geometry where you can put the inverse images to use, but inverse images are simply much more general and they're very convenient do describe many situations.
In summary: inverse images are just a way to talk about what is the set of elements in $A$ that are mapped to some subset of $B$. This is abstract and it'll only have one specific meaning when you use this within some specific study. The purpose then is just giving a name and notation to something common and useful.