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The logical address, specifically an IP address, is added at the Network layer of the OSI model during the encapsulation process. This layer is responsible for routing data packets from the source to the destination across different networks. The primary purpose of the Network layer is to determine how data is sent through the network, which involves addressing, routing, and forwarding the packets.

When data is sent from one host to another, it goes through various layers of the OSI model, starting from the Application layer down to the Physical layer. At the Network layer, logical addressing is crucial as it allows for identifying hosts across diverse networks, enabling the necessary routing. Each device on a network is assigned a unique IP address at this layer, ensuring that packets can be accurately delivered, regardless of the underlying physical network infrastructure.

Understanding the encapsulation process and the role of the Network layer highlights the significance of logical addressing in effective communication across networks.