It looks like a code scanner. In fact, you can use it as a code scanner too.
But, the tuning device also has the ability to UPLOAD to the computer system, and reprogram it to run more efficiently, modify air/fuel ratios, change shift firmness/shift points, adjust spark timing, etc.
You pay a tuner (like Torrie at fastpartsnetwork.com) for a "tune". The tune is a collection of parameters put together by the tuner. They email you the tune, you put it on the device, plug it into your car, and reprogram the pcm.
Kind of like a "chip" on other cars. Except the LS has to use a different approach to tuning.
I believe the standard hp gain from the tune is 18-20hp. I could be underestimating though.