Although the X-Terra's are a completely digital (DSP) for processing the signal, I will try to draw an analogy to an analog detector. There are/were two sort of "classes/designs" of analog detectors designated as two-filter & four-filter detectors. The four filter detectors worked better in difficult ground conditions with more stability and solid ID. But under more normal conditions the two-filter detectors which could be swung slower, have dominated the market. There have been some designs in the past that have been variable to try to optimize the detector for the conditions.
The X-Terra's being DSP based can mathematically create the equivalent of all manner of "filter types" in software. Therefore the "Stability Function" can be thought of as the equivalent of a two-filter/four-filter switch. "Stability Off" and you have a two-filter detector in your hands, "Stability On" and you now have a four-filter detector. Now is it exactly a two versus four filter setting? Only the designers really know, it could be a 2 1/4 versus a 3 3/4 setting.
So in difficult ground conditions it can stabilize the ID, but there is a caveat, the audio and visual ID may not always agree with "Stability On". On the old single tone detectors with an analog meter that was not a big issue, but some may find it disconcerting in use. But it is another feature the X-70 offers that many detectors don't, and you are free to adjust the detector for your best use.
HH
BarnacleBill