Card Holder authentication is the act of authenticating to the card, e.g. entering the PIN code for a Smart Card. A correct PIN code allows the card holder to use the card for cryptographic operations.
Caching card holder authentication is the act of keeping around the security context previously established by a user successfully authenticating to the card. Consequently, when a user wants to perform another cryptographic operation with the smart card, this is allowed because of the cached security context. Caching will be in effect accross different applications, independent of whether the applications are running locally or within a remote access session on a remote system.
Exact details about the design of Card Holder Authentication Caching can be found in the section about Component Design (Section 4.3, “Component Design”).