My question was half-baked and perhaps too elementary for MO. But... based upon the suggestion of @Niels, I decided to answer my own question for people wondering about the precise relationship between the group cohomology of the fundamental group and etale cohomology. My reference is part 2.1.2 of Piotr Achinger's thesis but Appendix A of Jacob Stix's thesis is also very good.
Basically, under minimal assumptions on X there are morphisms
$$\rho_i : \mathrm{H}^i(\pi_1(X,x), F_x) \rightarrow \mathrm{H}^i(X, F).$$
To say that $X$ is an algebraic $K(\pi,1)$-space is equivalent to the assertion that these morphisms are isomorphisms for each $i$.
Prototypical examples are $\mathrm{Spec}(K)$ (for any field $K$), a scheme of cohomological dimension $\leq 1$ (e.g. an affine curve), a smooth connected curve which is not geometrically isomorphic to $\mathbb{P}^1$, Abelian varieties.
One reason why the notion is important is that locally a smooth scheme in characteristic $0$ is covered by $K(\pi,1)$ spaces, and this was needed by Artin to prove the comparision theorem between 'etale cohomology and ordinary analytic cohomology. See section 1.1 of Achinger's thesis for further applications in arithmetic geometry.
The morphisms $\rho_i$ are constructed in several steps, roughly as follows:
i) $\pi_1$ is a profinite group and has a classifying space, denoted by $B \pi_1$. (Which is basically the category of finite $\pi_1$-sets endowed with a topology where $\{f_i : U_i \rightarrow U\}$ is a cover iff $\bigcup_i f_i(U_i) = U$).
ii) A sheaf (of finite Abelian groups) on $B\pi_1$ is just a finite Abelian group with a continuous $\pi_1$-action. Essentially because the categories of finite $\pi_1$-sets and finite etale covers of $X$ are equivalent.
iii) Sheaves on $B\pi_1$ are are equivalent to sheaves on $X$ on the finite etale site.
iv) There is a natural morphism from sheaves on the etale cite of X to sheaves on the finite etale site of X.