Two-stage cooling means the air conditioner or heat pump has a compressor with two levels of operation: high for hot summer days and low for milder days. Since the low setting is adequate to meet household-cooling demands 80% of the time, a two-stage unit runs for longer periods and produces more even temperatures.
Longer cooling cycles also translate to quieter, more efficient operation and enhanced humidity control. Compared to a single-stage unit, a two-stage air conditioner or heat pump can remove twice as much moisture from the air. This is important because when moisture levels are high, there's a higher potential for mold and other pollutant problems.