The phrase emphasizes a deliberate choice between options based on preference. He opted for early retirement in preference to continuing his stressful career.
Pro Tip 2/3
Subtle Preference
Use it to express a subtle or polite preference without strong criticism of the other options. In preference to driving, she takes the train for its comfort.
Pro Tip 3/3
Consider Context
The context can be personal taste, practical reasons, health, ethics, etc. He chose the job in Berlin in preference to the one in London due to family ties.