What exactly does snapshot restore do?

With an existing snapshot selected, there is an option in its submenu “Restore Droplet”. Which droplet will be restored? No droplet has been selected, this is a selected Snapshot submenu. There might be multiple, or no droplets associated with the selected Snapshot - so what would happen in that case? Where is “Restore Droplet” defined?

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If you click on Restore Droplet, you will be asked if you want to restore the original Droplet of which the snapshot was created to the older version that is the snapshot itself.