The simple way to put it is this:
AMD has 8 physical cores in the 8320 for example.
In yours, the 4770, it has 4 physical cores with 8 threads. Threads are typically weaker than cores, but in intels case they are still extremely powerful.
Most applications cant use more than 4 threads (physical or not) so they arent used. But those that can take huge advantages. Turning them off turns off ~half your cpu (metaphorically speaking) hence the drops in temp.