If you don't mind motion blur, or only part of your subject in focus, it's easy to maximize your exposure to minimize image noise. Just set the camera to base ISO (often ISO 100), use the widest available aperture, and use a long enough shutter speed.
However, in many situations, there isn't enough subject illumination to let you hit a high exposure, while getting enough depth of field to have the entire subject in focus, without objectionable levels of motion blur.
In these sorts of situations, Auto-ISO can be a useful tool to get the maximum exposure (minimum noise) for the specific situation.
Put your camera in "M" mode. Select the largest aperture that gives you sufficient depth of field. Select the slowest shutter that doesn't yield unwanted motion blur. This will give you the maximum exposure for your conditions. Set the ISO to Auto, and you will get reasonable image lightness for the exposure. This is a particularly useful technique for changing lighting conditions (for instance shooting a theatrical play), as it always gives you the highest exposure for the conditions. If you your camera was in an auto mode, and you had picked a particular fixed ISO, you would not get a higher exposure as the lighting increases.