It automates certain parts of the train operation, e.g. starting and stopping. In some systems it can entirely substitute for a driver, in others the human is still required to do some things.
The old signal system Haymarket-north was an old-school mechanical trip arm system like the Blue Line has. Everywhere south of there was the same solid-state ATO system the Red Line has where stops and speed limits are auto-enforced through a 1-bit electromagnetic pulse through the running rails that the train picks up. The construction project that finished about 5 years ago finally got the whole OL on the same system and removed a lot of maintenance-intensive mechanical parts.
ATO is a 'dumb' system in that it's an analog signal, has no two-way communication (signal is dispatcher-to-train only), and still relies on fixed signal blocks which can lead to congestion and bunching (i.e. trains stopped in tunnels) at individual blocks. CBTC, the newest kind of signal system, is digital, 2-way continuous communication, computer-controlled, and can be set up to allow moving blocks governed by safe distance between trains to substantially increase headways (note: while there's concern about its effectiveness on
light rail headways in the recent Green Line report, it is proven tech for realizing that upside on heavy rail. Especially lines as relatively simple as Red/Orange/Blue.
The Haymarket-north ATO project did trench all-new fiber cable for the new signals, meaning the trunk feed has got more than enough bandwidth to support a CBTC upgrade later. You just replace the trackside ATO signal repeaters that send the signals through the running rails with their CBTC equivalents (and likewise with the onboard equipment), and use the same fiber feed hooked up to the new system. It can even fire
both signal systems simultaneously if there needs to be an overlap period while they transition over. It was laying all those utilities that sent the project years late and millions overbudget, so thankfully they'll never have to do that again. Haymarket-south, however, does require a complete rip-out/replacement of all the circa-1987 copper signal wire. They can't replace the ATO down there without laying fiber. And that's a huge frigging expense. Thankfully, they can lay the fiber and run the existing ATO on it before they start rolling out CBTC, so it's a project they can accomplish in stages.