Loft Distribute Vertices Between Edges

Default Options

With the default options, "Loft Distribute Vertices Between Edges" will distribute vertices sandwiched between your selected edges along a (dynamically created and not retained) lofted NURBS surface passing between the edges you've selected:

Note: The vertices selected adhere to the same logic as Select Edges Between Vertices.

Proportional Distributions

The default distribution type for this tool is "Uniform", however you can select "Proportional" distribution in order to retain the same relative spacing between redistributed vertices:

Create a Deformer

If you check "Create Deformer", the curves forming the loft will be retained and connected to a proximity wrap deformer affecting your mesh: