As you are probably aware, we can use linear voltage regulators to power our circuits. We can likewise then use a resistive divider to get pretty much any voltage that we want. So, when should a voltage reference be used?
First thing to say, any voltage regulator has a voltage reference inside. So, if you have a linear regulator with a resistor divider, you are already using the voltage reference from the linear regulator. Modern IC linear regulators have pretty good Vref inside them, often a buried Zener or a bandgap reference.
All good so far, except not all Vref are the same. Some are better than others. The things that matters most is voltage accuracy (how far they are from the specified voltage), temperature drift, long term stability and noise. These parameters are given in the datasheet of the voltage regulators, or in the datasheet of voltage references.
Usually, a voltage reference IC will have better performance than a linear IC regulator. If that difference in performance is needed or not in a circuit, that's up to you to decide.
For example, if you have a 16bit ADC, and you use a 7805 regulator (~2% error) as a voltage reference, those 2% will mean about 1300 counts of error out of the 65536 full scale. If a +/-1300 accuracy error is acceptable for your ADC, that depends of the destination of the circuit. It's up to you to decide if a 7805 is good enough, or if the application needs a better Vref.
Selecting the Optimum Voltage Reference
https://www.analog.com/en/resources/technical-articles/selecting-the-optimum-voltage-reference.htmlVoltage reference selection basics
https://www.ti.com/lit/wp/slpy003a/slpy003a.pdf