Everyone now a day's concern about their privacy and security after the breach in ICloud few weeks ago. Not only users but also manufacturers are concern about privacy of their users. Software tech giants are also working on improving security and implementing new features to their OS.
Recently Apple introduced iOS 8 with data encryption standard for its users, Now Google is also jumping on this train because Google confirmed that data encryption will be regular for all users in upcoming iteration of Android i.e. Android L.
Google further claimed that in order to activate device data encryption will be compulsory for users. If users wanted to activate their device, they have to go through process of data encryption. From user point of view, it's great that it's standard because whether user turned it on or not it automatically will be effective.
Data Encryption is not new for Android operating system but I am sure most of Android users even don't know it was present since Android 3.0. Those Android users who know about this feature didn't bother to setting up because it took much longer time to setting up device with this feature.
For those users, who were afraid about the NSA should not worry because in a recent interview with The Verge Google made it clear that Keys of user will not be stored of the device, so it won't be shared with Law enforcement agencies. In this case if someone wanted access to your passwords will need physical access too.