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...It's a favorite tactic to pacify disgruntled vassals. Give them a title without any land in it. The title would vanish after some time and you can use it again, but the opinion bonus would stick.
When you hand out kingdom titles and you want them to stick, you need to confirm the recipient has lands inside that kingdom. Preferably also a duchy title and enough military power to hold into his new title against ambitious claimants.
If that is on, and you are for example the King of Ireland and have no land/vassals in Ireland after a while the title will automatically destroy.
They also did add a special version of this rule for empires, where an empire that has less then 20% of its De Jure's title will auto destroy.
Note that you can abuse this sometimes by taking land from AI realms so that their top title auto destroys, and shatters their realm into a bunch of independent vassals.
Extreme case would be an Emperor that had no kingdom or Duke titles. At the auto destruction of the Empire title, he is a count and all count+ vassals release.
The opinion bonus is removed when the title disappears.
The AI never destroys an title.
It is an event when the game has the De-Jure Requirement Game Rule on.
That's true, but it gives you time to improve your relations (like the decay of short reign or tyranny penalties) and you don't get a malus from revoking their title. The bonus for granting a title decays pretty quickly anyway.