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The timer is used to help the user track the time spent in the execution of the test.
This component will only be visible if the corresponding setting is active in the project settings miscellaneous.
The timer itself can be started, paused and reset manually using the button to do so:

You can also edit the value on the timer by clicking on it if the Set the value of the Time Tracker setting is active in the project settings.

The timer will also automatically start when the status of the Test Run changes to Executing and it will pause when it changes to a final status (i.e. Passed, Failed), it will also reset when it the Test Run changes to Todo.
Below the timer there is a component that tracks the time logged for this execution:

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