authentication – Are security keys with touch requirements more secure than those without?

My friends and I have worked at various tech companies which required us to use a security key in order to login to our computers. Some of us had to physically “touch” the device to login, while some of us at other companies did not need to touch our key.

Does the addition of having to touch the security key add any additional security? If so, how? If not, what is the purpose of it?