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What is the purpose of color-coding your writing?

to help you track the progress of a specific idea
to aid in editing your draft for grammar and punctuation
to enable you to better focus your topic during pre-writing
to help you identify specific issues while making revisions

Answer :

The best answer is: 

to help you identify specific issues while making revisions

The reason is: when you revise, you want to correct multiple things, for example: grammar, repeated vocabulary, wrong order of sentences, bad ideas, punctuation... you could choose one colour for each of those issues - this colour coding would help your in your writing process!

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