Sorry if I'm telling you stuff you already know...
A watchdog timer is a timer setup to reset a device should the "Timer" think the device has "Hung". If the watchdog timer expires it probably cycles power to the PLC, or grounds a Reset Pin.
The PLC needs to tell the watchdog timer that it is still awake and not "Hung/Crashed/Loop Locked/Etc...".
I'm used to dealing with the watchdog timers in milliseconds, so the example I'm about to give may not have relevant time scales...
EX:
The watchdog timer has an interval of 10 seconds. If it expires, the watchdog timer resets the PLC, Lights a lamp, phones home, etc...
The PLC is programmed to reset the watchdog timer every 8 seconds. So in theory, the watchdog timer never has a chance to expire.
It might be used if the PLC in question is looking for data from a communications device and there is no way to detect a timeout. It might have been installed if the code in the PLC is really slopply and works 90% of the time but just seems to crash every now and then.
Why it is on your particular application I can't tell you without a lot more info.
Good Luck with your project!