No, from what I can tell, it's actually to launch systemd itself inside a container. For example, from the document:

To allow systemd (and other code) to identify that it is executed within a container, please set the $container= environment variable for PID 1 in the container to a short lowercase string identifying your implementation. With this in place the ConditionVirtualization= setting in unit files will work properly. Example: "container=lxc-libvirt"