Limiters are useful for controlling peaks.
- you start mixing your tune and adjusting EQ with things in mono more or less.
- you tweak eq to remove sounds you don't want and to ensure you can clearly hear things you do want.
- you may add compression on various tracks to help make them more clearly audible more of the time.
--Distorted electric guitar is something that rarely needs compression the tube amp really is the compressor.
Limiters are useful for things that have very loud peeks compared to average volume. A limiter is just a compressor at a very high ratio.
Examples of where to use a limiter on a single track might be a bass that is being slapped. Normally, the sound of the bass is fairly soft compared with when the bassist slaps the strings. You want to hear the slap, but you need the average volume to be near the volume of the slap. So you limit the sound so the slap is closer to the average sound of the bass.
Limiting applied at the end of the chain helps make it possible to get the average volume you want for the track without over compressing the individual tracks.
So... if you mix a track and then do bounce to tracks (lower the gain on the master bus until there is zero clipping) you will see the wave form for your track. There will be a few loudest moments for the track. If you normalize to 0 or -.1 now, you have the track as loud as it can go without clipping and without limiting.
Limiting will shave these loudest moments allowing you to bring up the average loudness of the track. Different limiters do this differently. Some try to be more transparent (make it hard to know there was limiting applied). Some add some distortion at the point of limiting that helps the listener know this would be going louder, but it's limited so that the listener can feel the excitement that goes with the loudness without having the loudness.
You can also use limiters in other creative ways to massively distort things. In general, when you use a limiter to crush a vocal (like a decimator) to get a cool sound, you are not trying to be transparent. You are going for something new.
Limiters on the master bus make the most sense when you understand average loudness for tracks and have a target loudness. In that case, the limiter is like a mixing gauge. If you are having to turn it up too much, you need to double back to your mix and try to tighten it up. If you are only shaving a few dB off the mix, your are probably in the range of transparent.
Look ahead options on limiters help the limiter be more transparent but increase latency. This means if you aren't adding new tracks and you want it to be transparent, turning up the look-ahead setting probably makes sense.