You're breather pipe has vapourised oil fumes coming out the engine, these are recirculated back into the intake.
These fumes are heavy, so if you flow them downwards and into a catch can the heavier molecules will stay down whilst the lighter ones will be recirculated. In it's own way a catch can is a filter. Why people do this is the recirculated oil fumes downgrade performance, which everyone into cars wants performance.
Keeping a catch can in a closed loop in the engine is fine, but if you vent gases out it's illegal, MOT failure or Mr Plod rape, plus venting fumes high up is silly, the fumes will re-enter the cabin when fans are on or windows open. if you do plan to vent to atmosphere run a nice long pipe downwards and under the chassis and out somewhere to avoid the smell and make it discreet.