Basically if your compiler can work out what you mean or what a value is "at compile time" it can hardcode this into the runtime code. Obviously if your runtime code has to do a calculation every time it will run slower, so if you can determine something at compile time it is much better.
Eg.
Constant folding:
If I write:
int i = 2;
i += MY_CONSTANT;
The compiler can perform this calulation at compile time because it knows what 2 is, and what MY_CONSTANT is. As such it saves itself from performing a calculation every single execution.