Any hard drive have some cache (now it's generally 64mb) that cache store files list that you'll need soon or a currently loading, however 64mb isn't really fast so the HDD speed is really limited when it's sustained read (in burst it can still gor 250-300Mb/s but only for a max of 64 Mb before emptying the cache, reload other things and redo the whole process...
Having an SSD as a cache will store way more things that any HDD can, the max is 64GB as more doesn't really help more as the drive can load fast enough and write on the HDD and can still have space to work at blazing fast SSD speed, (basically it load frequently used file like windows and more used programs until about 80% of the cache is filled and then it's fast to read, if you need to save, the SSD will save, then retransfer to the HDD (then you'll never have to wait as it's already registered fast on the SSD)
It makes an enormous difference and you don't need to format your whole drive for it to work, i was using it before reformatting and replacing whole partition separatly (one SSD for windows, 1 for Steam games and 2 1TB in raid 1 for data) i was booting just a little slower than a real SSD alone (it was like 15 Sec Maximum and now i'm booting in about 10Sec on a Crucial M4 (i don't even see the windows logo as it's too fast and i was seeing it for 1 sec before)
PS: you need a Z77/Z87 board or a caching drive with the Dataplex software, possibly work on P68 chipset but not all board was capable of doing it...