Not exactly. With the standard template library included in Geeklog, each time a page is built, the template is read from disk, translated to PHP, variables are substituted and the page is displayed.
The 'caching' template library, will stored the translated template (into PHP) to disk so the next time the template is used, that step can be skipped. Thus, you get a little faster page build times.
It also double checks to make sure the template hasn't been modified, if it detects a file date/time newer on the raw .thtml file, it will rebuild the cache file.
If for some reason you decided to delete all the cache files, no big deal, it will simply rebuild them as needed.
Clear as mud, right