More colors.
On an 8-bit display, the number of possible colors per pixel is 2^8 * 2^8 * 2^8 (ignoring alpha at the moment) = 2^24 = 16,777,216 (16.7 million). On a proper 10-bit display, the number of possible colors is 2^10 * 2^10 * 2^10 (again, ignoring alpha atm) = 2^30 = 1,073,741,824 (just over a billion), or 64 times as many possibilities as the 8 bit panel. More practically, it means 1024 shades of a color (or shades of grey), as opposed to 256, which helps prevent the weird banding you see in gradients of grey.
The reality is, very little supports full 10 bit, and most 10 bit displays don't really support that full billion possibilities. Including this iMac, which doesn't claim to be a proper 10 bit display.