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Think of the cache like a little holding cell that your computer stores data in so that when it interacts with a server, the server can just look at it there as opposed to re-computing it. It speeds up interaction between you and the webpage and causes things to load faster.

Clearing it is like emptying it and if there's bad/old data in the cache, it can also fix a variety of problems. If every time you load a page on CYS, the cache says you're logged on, then logging off (which causes the page to reload) won't do anything since the cache still says your logged on. It's a minor site bug.