A subdivision surface lets you subdivide specific regions of a mesh, giving you the ability to finely tune or smooth certain areas without changing the entire mesh.
Subdivision surfaces help you keep a lower polygon count because they only insert control points where you need them (instead of uniformly across the entire mesh). However, subdivision surfaces have the slowest performance of the three smoothing methods. See Smoothing polygons.
For more information on subdivision surfaces, see the Subdivision Surfaces documentation archive, available at http://www.autodesk.com/maya-docs-archive.