There is a uh, user friendly description on Wikipedia. See their description of Level of Detail,
https://en.wikipedia.org/wiki/Level_of_detail It has a pretty good explanation of the use of LOD in video games, and a mention of a visual artifact that we sometimes still see in a lot of games like SC. eg, you're approaching an area where a rock is located, and suddenly the rock either changes geometry, or "pops" into existence. That's the result of the Level of Detail algorithm, but it is also something that using the GPU should help with.
All the game needs to know to model a ship is, what ship model, including texture map, I only need that info once, then I can leave that alone unless the ship crashes, blows up, or moves out of view. SC keeps a cache in the files it loads into your system for that. Then, every so often (According to the LOD implementation) the game needs to update the object location relative to my view, it's change in orientation, and what is it's current velocity. that's 18 bytes per frame, and I don't need to know that every frame. Just whenever the LOD says so, or every so often to check that the prediction for frames my PC doesn't want (due to LOD again) hasn't gotten behind or ahead.
You can lower the Level of Detail, or raise it, based on how much bandwidth you want the game to use, up to the limit of your connection. Make it too slow, and you'll start seeing more correction cycles at some point. That's also known as "rubber banding", because it looks like the object springs forward, or snaps back to where it was a few seconds ago. If you want to improve that, get a better internet connection. It's not the software.