It provides automated scheduling and execution of the driver tests that hardware vendors are required to pass in order to qualify to use the Microsoft Designed for Windows Logo.
It also enables users to automate driver tests they have created themselves.
During the Windows 2000, XP, 2003 timeframe there was an old tool Hardware Compatibility Test (HCT) to certify devices.
At that time DTM was part of Windows Driver Kit (WDK).
Later DTM was separated from WDK and changed its name to Windows Logo Kit (WLK).