You're correct in a way.
Volate ID sets the reference voltage across the power land VCC which supplies the core voltage to the processors (measured across VCC_SENSE and VSS_SENSE). All this controls is the performance profile of the processor, so a lower working VID will have a lower TDP than a higher. Amps required (Icc) may also be lower with lower VID CPU's, so they do run cooler/lower power/lower TDP than one with a higher VID at the same frequency/amps per core/bus speed. That's why they're better. 0.85VID is the lowest and 1.6VID is the highest possible.
But they can run cool with a low VID at stock and still be bad oc'ers and so people tend to look at Batch/Wafer to "estimate" the oc potential. The two combined help potential customers.
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