As the name suggests a link click event is happening when the user clicks on a link on the website. There are some special cases though. If the link occurs in the top menu of the website, then a top menu link click event is being tracked, if it occurs in the footer section then a footer link click is being tracked, if the click downloads a document, then a download click is fired and if the link contains an info card / article, then an article link click event is being tracked. Basic link click is tracked for all other cases. This event may give you better data than your regular GTM setup because in cases where the link contains inner elements (ex: like an image) the regular GTM link click trigger will not fire. You will receive this event consistently for all link clicks regardless of other elements embedded in the link element.

Parameters

id: the id HTML attribute of the link element if it has one.
title: the title attribute of the link if it has one
text: the text content of the link truncated to 150 characters at max.
link: the complete url where the link is pointing to.
link_direction: one of: internal, external, subdomain or parent domain
link_type: one of: javascript, page anchor or generic

Utilization

You can use this data to discover which navigation paths users are using within your website. You can use it to see which other websites that you reference users are leaving towards.