In order to protect shared resources, Salesforce enforces a maximum number of DML statements which can be executed inside a single https://developer.salesforce.com/docs/atlas.en-us.apexcode.meta/apexcode/apex_transaction.htm[transaction]. This is part of https://developer.salesforce.com/docs/atlas.en-us.apexcode.meta/apexcode/apex_gov_limits.htm[Governor limits]. If a DML statement is nested inside a loop's body (For/While/Do-While) it might be executed more times than the Governor limit allows, making the code fail.
Thus it is a best practice to not have DML statements nested in the body of loops and instead perform the DML operation on a list of sObjects.
This rule raises an issue when it detects DML statements inside a loop.