Stall speed is the RPM that the torque converter starts to transmit power to the transmission. At idle, the torque converter is mostly freewheeling so that you can stop the car, but the faster it rotates it hydraulically links the housing to the output shaft through vanes inside the converter.
For most stock engine applications a low stall speed is OK, but if your engine is built and has a lopey idle and doesn't start to deliver power until a few thousand RPM's, then a higher stall speed torque converter is needed. Or if you want to launch fast at high RPM, then a high speed converter is used.