The compose key (usually AltGr) is used to make it easier to insert alternate characters and symbols using easy to remember character sequences. Here is a useful list with the available characters and symbols.
This key is disabled by default in Ubuntu and can be enabled as shown here: How can I enable Compose key?
But why is this key disabled by default in the first place?
I assume it's not enabled by default because there is no obvious key which would be suitable in all use cases. The key you define as a compose key stops working in its original way.