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A dedicated IP address is an IP address that is dedicated to only one domain name — not shared with other domain names. So, if anyone type that IP address, it will take them directly to the website.
Benefits of dedicated IP address:
If you have a dedicated IP address along with your VPS, you can access your VPS remotely.
If you're going to see what your website looks like before launching it. So, in that case, you need a dedicated IP.
With a dedicated Ip address, you couldn't face issues with your email. It will isolate your website and associated email from any other site.
You'll get a higher level of control on the server with dedicated IP. You have a lot more freedom and customization abilities.
In some cases, you might need a dedicated IP address if you want to install the SSL certificate.
A dedicated IP address could boost in performance and security of your website.