The old "Turbo" *reduced* performance. When Turbo was ON, the CPU speed would be reduced. The purpose was for software which relied on cycle specifics. The IBM AT introduced the Turbo button which was also featured on most clones- it reduced the 12Mhz 286 CPU down to the 4.77Mhz Speed of the XT and original IBM PC, so that software that was written cycle-dependent would run correctly- Later systems effectively reduced to speeds for the previous generation. I had a 286 which would "Turbo" down to 4.77Mhz, a 386 which would "Turbo" from 40Mhz to 12Mhz, and a 4867 that would Turbo down from 120Mhz to 33Mhz (The 386 and 486 had nifty LED digit displays next to the turbo button as well)
It isn't really related to SpeedStep, TurboBoost, Turbo Core, etc. Except in Name.
As far as I can tell the specific details of how the current stuff works aren't revealed. It fundamentally tries to intelligently determine when to overclock the chip based on Processor load but apparently it's not as simple as the utilization because people have reported issues with games or other software underperforming when it is enabled. They throttle at higher temperatures as before and the feature is a feature of the CPU- so it should work even if you boot, say, MS-DOS from a floppy and run an intensive task.