This convention is a useful way to distinguish strings that can be changed for clarity, for example, logging messages, and strings that can't be changed, for example, arguments to bitcoind or referencing dictionary keys. There are many current counterexamples of this convention in our functional tests, but it may be nice to have a convention going forward.
This README recommends adhering to the PEP-8 conventions, but that document says only "This PEP does not make a recommendation [on which kind of quote to use]."