Dying is considered an exit and thus will warp the player somewhere new.
This is done by using the last exit to get the new one.
Take a look at the two following scenarios.
Both of the above will lead to the same new location.
Some exits in the game are normally only possible to get once.
Usually because it's an exit from a cutscene and once that cutscene has been cleared it won't play again.
These exits can still be used again later.
For example, if the player loads into Termina Field from the end of the Skull Kid cutscene near the Swamp.
Then by using death the player could get back to the location they were sent to when they watched that cutscene earlier.
Because of death working like this it in general means there are two ways to achieve most, if not all, exits in the game.
This should make it always possible to reach any exit even when they player may think they are locked out of it.
Lets take a look at an example of a possible case where death may be required to reach a specific location.
Let us say the following.
Leave Bomb Shop → Enter Bomb Shop
To the untrained eye the player might think that this means it is impossible to ever get into the Bomb Shop.
Because how can the player leave the Bomb Shop without being in it?
This is where the mechanics of death come into play!
If the player finds the following.
??? → West Clock Town (from Bomb Shop)
Then they can use death to reach the Bomb Shop.
After having spawned at this location the player could then die (by using Blast Mask most likely in this case).
After dying they will then be loaded into the Bomb Shop!
This is because the death acted as if the player had left the shop and used this to calculate their new location which is then the Bomb Shop.