Old-time name was a "surge-tank" (and burp-tank) and it was typically installed in vehicles where the manufacturer felt that a cap in the top of the radiator was not sufficiently high enough to be considered the highest point in the system. The thinking was that it was needed to keep air pockets out of the system.
Probably put on the earliest Broncos due to the taper of the hood making the designers think that, even though a cap in the radiator WAS the highest point in the system, that it was too borderline and they needed the extra insurance of mounting the cap farther back, where the hood was a tiny bit higher.
After a couple of years, and probably a few arguments in-committee by the penny-pinchers in the group, I guess they decided that it was close enough to put it in the radiator after all.
And although it does work, anybody who'd changed their coolant often enough has probably run into minor issues with air in the system. I regularly had to aim the Bronco uphill while idling after a change, to get it to burp properly.
Some of the later model Mustangs dealt with that issue with a small air-bleed valve right on top of the engine that you had to loosen while filling.
Paul