Well, just a Google search away, I found this.
In TH-350, TH-400, and 700-R4 automatic transmissions, a governor controls part and full throttle up-shifts. Think of the governor as a hydraulic speedometer, which tells the transmission when to shift up based on vehicle speed. The governor turns in direct relation to the output shaft rotation, and therefore vehicle speed. Inside the governor is a valve that opens and closes to "govern" the upshifts.
There are two sets of rotating weights in the governor. The heavier, outer weights act at low vehicle speed and the lighter inner weights take over at higher speeds, especially during full throttle conditions. Centrifugal force acting upon the weights controls the opening and closing of the governor valve itself. The valve controls governor pressure delivery, which in turn controls upshifts.
When there is enough centrifugal force upon the weights to open the valve, line governor pressure overrides the shift valve spring, and the shift occurs. Changing the inner weights on the governor allows you to adjust the rate of this line pressure versus vehicle speed balancing act, and optimize full throttle shift points to your vehicles power to weight ratio, rear end gear ratio, and so on.
Since the governor came set from the factory for whichever vehicle the transmission originally came in, you may or may not be getting the most out of your setup. This is especially true if you have changed rear end gear ratios.
The B&M Governor Recalibration Kit allows for raising or lowering of transmission shift points relative to vehicle speed. Keep in mind that the governor has no effect on the crispness or "hit" of the shifts. Modifications to shift characteristics must be made by modifying the valve body with a shift recalibration kit.