Best to ask Hassat Hunter about this. Think it allows you to change actions of certain script files. And again, it depends on what kind of cheats you are looking for. Example of Visquis is a specific editing of a certain script/file.
As I said, I hardly use mods, only those who do will be familiar with this.
Doubt that it is as simple as typing something like enable cheats=1. Its more like a specific way of editing game files before playing a game.
It is supposed to be used on save game files for any character that you are playing, which is found in C:\Program Files\LucasArts\SWKotOR2 folder. It's not that hard to locate your save files in that folder on your computer.