Default: auto (frame based threads: 1.5 * logical processors, rounded down; slice based threads: 1 * logical processors)
Enables parallel encoding by using more than 1 thread to increase speed on multi-core systems. The quality loss from multiple threads is mostly negligible unless using very high numbers of threads (say, above 16). The speed gain should be slightly less than linear until you start using more than 1 thread per 40px of vertical video, at which point the gain from additional threads sharply decreases.
x264 currently has an internal limit on the number of threads set at 128, realistically you should never set it this high.