Here's how Wikipedia describes overclocking
"Overclocking is the process of making a computer or component operate faster than the clock frequency specified by the manufacturer by modifying system parameters. One of the most important techniques is running at a higher clock rate (more clock cycles per second; hence the name "overclocking"), but other parameters, such as CPU multiplier and memory timings, can also be changed and would be considered to be overclocking. Operating voltages may also be changed (increased), which can increase the speed at which operation remains stable. Most overclocking techniques increase power consumption, generating more heat, which must be dispersed if the chip is to remain operational."
There's more, found here http://en.wikipedia.org/wiki/Overclocking