@davidel
The game must read it at some point, so anyone with enough effort, knowledge and right tools can probably read it too. I don't know if there's a way to make a mod that can't be decrypted.
@dphome
It converts a compiled cleo mod (game readable) to a decompiled version (human readable), in similar way the sanny builder does when you open a ".cs" file.
Some scripters use a trick to hide jump destinations that appear as "jump NAN.0" when opened with sanny builder (I think it's done by replacing integer type identifier with float type identifier in jump opcodes, so then sanny builder gets confused while decompiling but the cleo mod still works when loaded in game). This CleoDecompiler by SR_team seems to output jump destinations correctly even when that trick is used. Btw another way to find out jump destinations in such case is to search and replace all modified opcodes which could be done by using Python script (e.g. "FixLabelDatatype_Float_To_Int" function from
decryptCleo.py file )
Another benefit of using such open source decompiler is that you can automate decrypting cleo mods, maybe not fully, but at least to some extent.