These day I work with a database that have this style of relationship then I’ve been very confused with it. This database is in a very large web app & have worked well for 10 years then I wonder whether this design is good in someway? or in which situations I should implement it?
Welcome any idea!

These day I work with a database that have this style of relationship then
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There is nothing wrong in my opinion. You can have, for example, in a personal_data table a place_of_birth field and a place_of_living field both referring to a cities table. By the way you should post a more meaningful example to have a more precise answer.