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Automatic subdividing terrains into sub-meshes in order to overcome the 65K polygon limitation of most 3D cards.

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So I can make one huge terrain and the engine will do the rest?

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Chunked LOD for speeding up terrain rendering.

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What exactly is chunked LOD?

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So I can make one huge terrain and the engine will do the rest?

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yes.

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What exactly is chunked LOD?

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i don't know, but the best thing would be, if you could combine static and dynamic lod.

Chunked LOD- it takes each subdivision and applies LOD to it, using a similar system to the current entity LOD..

As has been stated many times by JCL, with modern GPUs, the cost of dynamically tesselating terrains usually outweighs the benfits. Chunked LOD is a good compromise, because its rarely noticeable, will reduce polygons counts by a good amount, and doesnt take any processing power to calculate.

I dont doubt that in the future, everything will be dynamically tesselated from higher-order surfaces, including terrains and all other geometry.. but that's not here yet with A6.. maybe A7.