http://auto.howstuffworks.com/engine.htm
That website is AWESOME.
Basically, compression happens when the piston moves up and spark is about to happen. The compression ratio is how much it compresses, and is affected by pistons and some other things, like your headgasket.
So let's say your stuffing 8.8 units into 1 volume...your gasoline/air mixture is under pressure. And even more considering you're talking turbocharged compressed air already going into the cylinder. This makes it more likely for the mixture to combust before spark.
More compression is more power because there is more air/fuel.
It is also more likely to combust before spark, causing detenation (knock) and damanging your motor. Most KA-Ts I've seen use 8.8:1 or 9:1.