What it means is when determining effects or duration of a spell they are considered to be 1 level higher than they actually are. So for example lets say you are playing a 1st level Altmer Wizard and you cast Mage armour. The duration for the spell is 1 hour per caster level. As a first level wizard your caster level is 1 but because you are an Altmer you are considered to have a +1 caster level so as a first level wizard your mage armour would last for 2 hours as your caster level is considered to be 2. Any other race casting Mage armour as a first level wizard would only have it last for 1 hour. I hope this helps you, if not I have no qualms explaining further.