Rob's answer is a good one (thanks, Rob!) The first post is a rough example of how you could use ColorMask on a narrow band Hubble palette image to get the common gold/turquoise colouring that seems popular. It shows some of the basic things you can do.
The more general answer is that you use the script whenever you want to isolate and process a specific colour or range of colours. As an example, say you have a faint blue reflection nebula that you want to enhance. Make a blue mask with ColorMask, apply it to the image, and use standard PI processes to enhance the blue areas of the image - as an example you could use CurvesTranformation to boost the blue channel and perhaps do a small HistogramTransformation boost to brighten the blue areas as well.
ColorMask is just a basic tool. It relies on you to figure out when and how it is useful. If you're just a beginner it may take a while for you to figure that out. When I started out I found the technical side of processing didn't seem that difficult. The part I found difficult (still do!) was developing a sense of aesthetics and knowing what an image "needed." You may find that ColorMask makes more sense as your personal sense of aesthetics develops and you start to have stronger ideas about how you want an image to look. ColorMask is only one of many tools that you can use to get to where you want to go.
Cheers,
Rick.