Who here remembers Zelda II, where it didn't matter where you were in the world, if you got a game over it was back to comatose Zelda's bedside? You could be in the depths of the final temple, about to confront your own shadow, and losing all your health would send you back to where you were when the game started! Thank god I'm not that cruel! But what I've got in mind is still similar.
Go and get yourself killed in a dungeon and you'll still respawn in that same dungeon. Or more specifically so long as you died on a DMap marked as "Continue Here" you'll respawn wherever you set Link to continue. But what about places that weren't marked as such? That's where this script would come in to play.
Whenever Link meets an untimely end, the script checks to see what DMap he died on, and whether or not it's marked as "Continue Here". If it is, well then that's the end of it. But if it's not, then the script directs Link's continue location to a particular screen of a particular DMap (which the user can then change in the compiler). You'll still go through the continue screen. You'll still be able to choose whether to continue, save, or restart. But when you do eventually respawn it will be on whatever screen the script directs you to (unless the DMap set the continue point in which case the script does nothing).