Timestep Control and the CFL Limit
Information Moves One Cell at a Time
An explicit update can move information at most one cell per step, so the Courant number must stay at or below one. That bound is the CFL condition.
What Happens Above the Limit
At or below one the front advances cleanly, smeared a little by numerical diffusion. Above one the scheme tries to move the front more than a cell per step, the error compounds, and the solution blows up into growing oscillations.
Why It Costs
A simulator that hits the CFL limit must shrink the timestep to stay stable. That is the cost an explicit (IMPES) scheme pays and a fully implicit one avoids.