The false edge on a knife refers to a bevel on its spine near the point. A false edge usually extends ⅓ from the tip towards the handle. It is not sharp and is comparable to a swedge. Its purpose is to add good looks.
A swedge is the unsharpened version of a false edge – a beveled faux edge opposite the cutting edge but not running full length designed to appear as if it were sharpened. It is for decoration not cutting.
In terms of functionality, the false edge makes the tip of your knife double-edged, which improves penetration while allowing greater control when piercing. A false edge also reduces the weight of the blade and enhances balance when using the knife.
A false edge is decorative and sharp, which adds to the function of your knife. It also cuts out a little extra weight, enhancing balance and making the blade move quicker in hand. If your knife comes with swedge, you may consider sharpening the swedge to improve its function.
