The gcc compiler can optimize code by taking advantage of CPU specific features. Especially for ARM CPU's, this can have impact on application performance. ARM CPU's, even under the same architecture, could be implemented with different versions of floating point units (FPU). Utilizing full FPU potential improves performance of heavier operating systems such as full Linux distributions.
These flags can both be used to set the CPU type. Setting one or the other is sufficient.
GCC supports all Cortex-A processors up to A15 (2010). Example are 'cortex-a5', 'cortex-a7', 'cortex-a8', 'cortex-a9', 'cortex-a15'. For specific values on popular boards see table below.