The function of the condition levers is different on every installation. On the E-120, the position of the levers serves many purposes. They feather the prop, and set the governors to control prop speed in flight. They also actuate the fuel shutoffs.
With the EEC, or Electronic Engine Control,functioning they also serve to govern engine speeds to certain minimum values on the ground. With the condition lever in feather, the engine Nh is governed to a min of 62%. Between Min RPM and Max RPM, the Nh is governed to a min of 50%. At max RPM, the Nh is governed to a min of 65%.
There are several reasons you would want these various values. On the ground, 50% Nh generally provides pleanty of thrust to manuver the airplane in beta range on the power levers. (Beta range being the area below flight idle and above reverse where the power levers directly control prop blade angle.) This lower engine speed allows us to better control the taxi speed without having to use the brakes. Also, on the Brasilia, RPM above 60% on the ground is to be avoided due to some sort of odd prop stress. Wouldn't want to have a prop blade come off at an inopportune moment, nowwould we.
With the condition levers at Max (as they would be for takeoff and landing) you get not only higher prop RPM, but an engine that is already spooled for takeoff, max reverse, or a possible go around, increasing you performance. Having the engine spooled up decreases the engine response time to power lever increases, giving you more instantaneous response.
Like I said earlier, this is one installation, on one airplane. It is bound to be different on many other A/C.