Navigators on board ship would use a bearing compass to measure the bearing of fixed landmarks, buoys, or celestial objects. By taking successive bearings of multiple known reference points, they can use simple geometric techniques (triangulation or resection) on a map or chart to determine their precise location, plan a course, and estimate speed.

In marine settings, it is also used to check for potential collision risks with other vessels by monitoring if their bearing remains constant over time.

The key feature that distinguishes a bearing compass from a standard compass is the inclusion of a sighting device, such as a prism, alidade, or viewfinder, which allows the user to simultaneously view the target and read the compass marks with increased accuracy.