The attack is noted as a recovery move, as it'll shoot the character upwards. It's certainly useful if she's fallen off of an edge and needs to get back up. Once she executes it, golden colored rings will surround her body and she'll suddenly vanish, only a split second later to be found higher up in the air. It can even go through ground, something that most characters are not capable of doing.
Sheik has a similar move called Vanish, though while it does do more damage, it doesn't go as high as Farore's Wind does, making it a less reliable recovery move, though a more powerful attack.