So, what are "cached background processes"?
Since you are asking for a technical interpretation of something listed in a device UI, the definition may vary by device, if device manufacturers elected to tinker with the Settings app.
That being said, "cached background processes" usually refers to processes that do not have a foreground activity and do not have a running service. These processes are kept in memory simply because we have enough memory to do so, and therefore, as you note, the user can switch back to these processes quickly. As Android starts to need more system RAM for yet other processes, the "cached background processes" tend to be the processes that get terminated to free up system RAM.
The pre-eminent example of a "cached background process" would be one where the user launched the app, poked around it briefly, then pressed HOME to return to the home screen. If the process does not have a running service, I would expect to find it listed as a "cached background process".
They are still in memory, rather than switched to "disk" (as desktops/laptops do), right?
Correct. Android devices do not use swap space.
from
http://stackoverflow.com/questions/...etween-running-processes-and-cached-backgroun
Therefore it seems that the former is how much RAM you are actively using in apps, the latter is how much RAM is physically in use. There is still no reason to clear this cache, because if you needed that space, Android would just take it back. The page linked above has a much more thorough explanation on memory clearing/prioritization if you are curious.