Practicing this pose improves stability, concentration, core awareness and balance.
In Sun Salutation each pose from the sequence energizes one of the seven chakras, from root to crown. Utthita ashwa sanchalanasana works on the ajna (third eye chakra), which is responsible for clear perception, intuition and ability to follow one's own Truth. This pose also stimulates the sacral chakra and opens the heart chakra.
In order to make this pose a little easier, one can place yoga blocks under the hands or lower the back knee to the floor. At the beginning, one can keep the hands on the mat, then later place them on the front thigh and then raise them up toward the ceiling.