What is the FX loop on an amp for?
An FX Loop is essential an insert point in your amplifier circuit that allows you to insert a piece of gear after the preamp circuit, but before the power amp circuit. Some guitar players are happy to run everything into the front end of the amp, and others prefer to insert certain effects types into the loop.
Is FX loop necessary?
You don't actually need an effects loop on your amp as plenty of guitarists don't bother using them, especially if you're only using distortion, fuzz or boost pedals. But if you want to get far greater clarity when using effects like modulation, delay and reverb, the effects loop might be something you'll appreciate.