If you look in the screenshots for the SSE version: https://www.nexusmods.com/skyrimspecialedition/mods/27776 it'll give you an idea. Basically, it lets you change the customisation strings (text) with whatever you want. "Iron Sword (fine)" can be renamed to "Iron Sword - pretty good" or "Iron Sword +1", or whatever.
Trollumthinks is exactly correct. It also lets you give names for more than just the standard 6 improvement levels in vanilla, so that when you either use mods or the crafting loop to improve items more than possible in vanilla you actually get a clear name distinction rather than it still just having "legendary" in it's name.
Adamant has an optional smithing addon that changes the scheme to just be a "+<number>" scheme and provides support for up to 20 tiers. So with that you have smithed steel swords labelled "steel sword +1" through "steel sword +20" in a playthrough where you completely max it out, for example.
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Basically, it lets you change the customisation strings (text) with whatever you want.
"Iron Sword (fine)" can be renamed to "Iron Sword - pretty good" or "Iron Sword +1", or whatever.
Disclaimer: I haven't actually tried it.
Adamant has an optional smithing addon that changes the scheme to just be a "+<number>" scheme and provides support for up to 20 tiers. So with that you have smithed steel swords labelled "steel sword +1" through "steel sword +20" in a playthrough where you completely max it out, for example.