This is the positive crankcase ventilation valve something I actually know a little bit about. It deals with blowby gases which contain unburned fuel & partially burned fuel (Hydrocarbons and Carbon monoxide) and sulfur, acids particulates and water all of which will degrade your oil and are nasty to spit out into the air. The PCV pulls these into the air intake where they can be safely burned in the engine.
If the engine crankcase builds up enough pressure then it can affect the engines performance, running lean etc. Water and oil can end up in odd places like the air filter eventually clogging the air filter. It can cause oil leaks, smoke, failures of gaskets and seals, misfiring engine, rough idling and increased oil consumption.