Easier and Faster to Work with Repositories:
Your Sources list is its own tab on the tab bar, for fast access.
This tab also gives you a new option for browsing packages: you can tap a source and see a list of all the sections (categories) within that source. You can look at what your favorite source offers for your favorite type of package.
The Sources tab also tells you what's happening when Cydia refreshes package information from your sources: it shows a loading indicator next to each individual source (instead of the old black drop-bar). This way, you'll know if one of your sources is loading very slowly. (And Cydia is now better at fetching data from multiple sources at once.)
Cydia no longer has the limitation that caused the error message that says "Wow, you exceeded the number of package names this APT is capable of." (If you have this error message in your old version, remove some sources you've added, which will resolve the error and allow you to update Cydia.)
Easier to See Installed Packages:
Your list of installed packages is its own tab (Installed), with improved features too.
Manage is now gone and the Queue button has been moved to 'Installed'.
Older versions of Cydia provided a Simple/Expert toggle for people who selected that they were a "User" or "Hacker" (instead of a "Developer") — but this version erases those distinctions and shows everyone the useful Simple/Expert toggle (now called User/Expert). The User/Expert toggle lets you choose between viewing ordinary installed packages such as extensions (User) and all installed packages including developer and internal packages (Expert).
There is also a new option (Recent) that displays your installed packages sorted by date installed. This may help you when you're trying to solve problems on your device: you may want to start by uninstalling recently-added packages.
Better Integrated and More Functional:
To assist people who use Google's two-factor authentication app, Cydia supports limited multitasking while a slide-up dialog panel is being displayed (for login or payment).
Cydia supports international keyboards on every version of iOS. It also includes translations for more languages: Arabic, Chinese (simplified and traditional), Dutch, English, French, German, Greek, Hebrew, Italian, Japanese, Korean, Polish, Portuguese and Brazilian Portuguese, Russian, Spanish, Swedish, Thai, Turkish, and Vietnamese.
The alphabetic "thumb index" on the right side of table views is now correct for the user's locale and looks better.
On non-Retina displays, Cydia now renders package icons less blurry.
The iOS 5/6 iPad rotation bug is fixed. The iOS 7 "status bar bug" is fixed.
How to Update:
To update, simply open Cydia and let it refresh. You should get a prompt asking you to update to the latest version. If not, select the Changes tab, then tap the Upgrade button at the top right.
If you haven't jailbroken already you can check if you have an eligible device and firmware version using the iClarified Jailbreak Wizard. There isn't a jailbreak for iOS 7.1.1 yet but please follow iClarified on Twitter, Facebook, Google+, or RSS for updates.