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This setting enables or disables the internal cache on your processor. This is also known as the L1 or level 1 cache. For 486 or later processors this should be enabled; turning off the level one cache will lead to a major performance hit. Earlier processors don't have internal cache, and enabling this setting can possibly lead to problems. You should disable this setting only for testing purposes if you are trying to find a problem, or if you suspect a bad processor chip.
On some BIOSes you may see three choices: "Disabled", "Write Through" and "Write Back". These refer to the cache's write policy. The write back cache policy will produce the best performance.
Next: External Cache