A capo will allow you to alter your sound to suit an arrangement better. You can transpose up a key so you can play something correctly if the original artist used a capo.
You can clamp a few strings and change a tuning completely without tuning up or tuning down.
A capo allows you to play with less tension so if barre chords are messing you up, a capo will alleviate some of that tension.
You can also get a spider capo which is what I have. It is a series of levers that clamp down individual strings. So if I want the second fret of the D, G, and A strings fretted, I just have to flip the switches.
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