The femoral canal contains lymphatic vessels, and adipose and loose connective tissue, as well as - sometimes - a deep inguinal lymph node.
The function of the femoral canal is to accommodate the distension of the femoral vein when venous return from the leg is increased or temporarily restricted (e.g. during a Valsalva maneuver).
The space of the canal allows for the expansion of the femoral vein when venous return from the lower limbs is increased or when increased intra-abdominal pressure (Valsalva maneuver) causes a temporary stasis in the venous flow.
Though femoral hernias are rare, their passage through the inflexible femoral ring puts them at particular risk of strangulation, giving them surgical priority.
This article incorporates text in the public domain from page 625 of the 20th edition of Gray's Anatomy (1918)