Tor provides transport-layer encryption between the client and the rendezvous point, but HTTPS adds application-layer security that protects against several additional threat models. An SSL certificate for your .onion address proves to visitors that they have connected to the authentic site, not a phishing clone with a similar-looking address.
HTTPS also enables HTTP/2, which significantly improves page load performance over Tor's already-high latency connections. Browsers display the familiar padlock icon, increasing user trust. Additionally, some web applications and APIs require HTTPS for features like service workers, secure cookies, and WebSocket connections.
The CA/Browser Forum's Ballot SC27 in 2020 formally allowed Certificate Authorities to issue Domain Validation certificates for .onion domains, treating them as special-use domains under RFC 7686. This opened the door for legitimate SSL/TLS on Tor hidden services.