What it does
The EU's CosIng database lists two functions for it: a cleansing surfactant, which helps water wash away oil and dirt, and an emulsifying surfactant, which helps oil and water mix.1 In a shampoo it is usually the main cleanser, near the top of the list after water.
SLES is not SLS
The "eth" in laureth marks a change to the molecule: SLES belongs to the salts of sulfated ethoxylated alcohols, a different family from the plain alkyl sulfates such as SLS.2
The difference shows on skin. In a patch-test study comparing the two at the same concentrations, SLS produced a pronounced irritant reaction and SLES a far milder one.3 A patch held on skin for up to a day is not the same as a shampoo rinsed off after a minute, but it shows the two names are not interchangeable.
The finished formula matters
The US Cosmetic Ingredient Review found that SLES can irritate skin and eyes but is not a sensitiser, and that in practice it is not regularly seen to be irritating because of the formulations it is used in. The panel's conclusion was that it should be used only when it can be formulated to be non-irritating.2
Shampoos often combine it with other surfactants, such as Cocamidopropyl Betaine. How a shampoo feels depends on that whole system, not on one name.
How it appears on a label
As Sodium Laureth Sulfate, sometimes as Sodium Lauryl Ether Sulfate. Ammonium laureth sulfate is a close relative with its own name.2 A "sulfate-free" claim means the formula uses other cleansers; it does not say which, or how gentle they are.