Yeah, "laps" isn't really the right word for it, but it's consistent with how you would use the function on a stopwatch. If you were using it at a track, you'd hit it when you completed a lap, but it's for breaking up the ride into any segment you want. For example, when I go out to do a 2x20' set:
Leave house: hit start
warm up/ride to the interval road
start first 20': hit lap
recovery: hit lap
second 20' hit lap
recovery, : hit lap
get home: hit end
So my workout file on Strava or TP will show five laps, but I only really care about two.

(That one had a short c/d because it was after work, I had driven to my interval road, and I was late for dinner.)