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Cryo treating is a form of stress relief. Everything has a residual stress in it due to flaws in the material, the way they material was refined, the way the part was machined, etc. Cryo treating takes and cools the material to something insane like -300 degrees celsius. By doing this, it takes all the energy (stress) out of the part (same thing that happens when water freezes to ice). So what it does is relieves the part of any residual stresses. The benefits are increased strength, wear resistance, and heat resistance. In applications on some types of steel, I've heard that it can increase strength up to 40%. That's more or less the jist of things. Do a search online, there are thousands of pages about it.
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