In the 18th and early 19th centuries, when it was the fashion to place furnishings along the walls, the chair rail prevented chairs from banging up against the wall and damaging the plaster surfaces. The dado and chair rail became more of a decorative feature in the Victorian era, when furnishings were moved out from the walls in various groupings.

You see fully wainscoted walls in the first half of the 18th century. Wainscoting was also a sort of early insulation, especially for stone houses, where the walls could be cold and damp. Wood absorbs heat for a cozy feeling.