What is "save a version?"

I tried "help," but the answer only discused the meaning of "Duplicate," not "SAve a version."  I'm wondering where that version goes when you save it and why it doesn't give you the opportunity to name it when you save a version.  Anyone know?

Salient details described in http://www.apple.com/macosx/whats-new/auto-save.html, http://support.apple.com/kb/HT4753, and https://discussions.apple.com/message/15877452#15877452

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