All Teletype control codes were handed down through modifications to the 19th century Baudot 5-bit code set, which was telegraphy-based. Following the invention of the teleprinter, additions were made to accommodate increasing capabilities. The reworked Baudot code set was extended to 7 bits, which is why the original ASCII standard was 7 bits—the Teletype 33ASR machine’s Baudot code ended up being the model for ASCII.
In the Teletype universe, the machine would do different things if it received one of the DC codes. Usually DC1 and DC2 were used to start an accessory attached to the TTY and DC3 and DC4 were used to stop an accessory. The Teletype Corporation didn’t specify the accessory being so controlled, it was up to the TTY operators to figure it out based on what was attached to the machine. The Navy units I worked with used DC1 to stop the paper tape reader and DC3 to start it. It could be that was why DC1 and DC3 were subsequently adopted for use as software flow-control symbols, with DC3 telling the remote station to stop sending.
Many of the other control characters in the ASCII set are only of historical interest—the obsolescence of TTYs saw to that. Some dot matrix printers continue to use them for various odd things.