It provides very small attenuation for transmission from port 1 to 2.But provides very high attenuation for transmission
from port 2 to 1.
In most microwave generator the output amplitude tends to fluctuate with change in load impedance.
Fluctuations occur due to mismatch of generator output to load that results reflected wave from load. That reflected wave causes in stability of amplitude and frequency of microwave generator.
If isolator is inserted between generator and load then generator is connected to load with zero attenuation and reflection.
If any reflection generated from load side than those are completely absorbed by isolator without affecting generator output. Therefore generator appears to be matched for all loads.