This is the STOP screw.
Its presence is critically important. Without it being present, the lens can rotate further in the camera mount than the click-in position. If this should occur, the lens becomes jammed in the mount and can be very difficult indeed to remove. I have seen cases where the repair tech had to disassemble the camera to get the lens off again.
The morale here is: always check that a stop screw is present. It should not be 'loose', just sticking out and doing its job.
If the screw gets off and goes astray, most small screws can replace it. But the replacement should be of the kind with a tall head like the one shown in the photo of dslater's post. The main point is it should NEVER go flush to the surface.
When one does lens maintenance, it is advantageous to unscrew the stop screw and put some Loctite into the screw hole, then put the stop screw back and tighten it home. Some stop screws double in keeping the stray light baffle in position (always three small screws doing the job, one of which might be the stop screw). If that is the case, the Loctite should not be of the strongest bonding type otherwise you might have difficulties removing the rear baffle later.