You see, the CPU runs fast, and RAM runs slow. When the CPU needs to get information from RAM it has to wait around for a long time.
This is where the cache comes in. The cache is constantly paying attention to the data the CPU is using. It tries to have data ready ahead of time from RAM for the CPU. When the CPU needs more data, it can first check the cache. If the data is in the cache, the CPU gets the data much more quickly.
In short, cache memory speeds up processing. The more cache your PC has, the faster the processing will be.