CAPS are a "CAPACITORS". A CAP KIT is simply a group of capacitors for an individual board (chassis). Instead of having to purchase each capacitor individually, folks put together a group of these capacitors for each board and sell them as kits. Sometimes other things (like a transformer, width coil, etc) is also included.
Electrolytic Capacitors (the round "tube" looking things on a chassic/pcb) are filled with a liquid that dries up (or worse, leaks out) over time. When you replace these capacitors, it rectifies many issues with a monitor...such as color issues, geometry issues, "squeezed screen" issues, sometimes it rectifies waves, etc. Being that most arcade monitors are 20 years+ old, it is always a good idea to replace the capacitors. Most kits run $5 - $15 so they are inexpensive. If you have never soldered on a component level before, the task may seem daunting. Prior to doing my first Cap Kit, I was in the same boat...but it is fairly easy to do ...a lot easier than I thought it would be.
Make sure you read up on (A) How to discharge a monitor tube...this is THE MOST IMPORTANT thing you READ and RE-READ and RE-RE-RE-READ about...it can kill you if you don't do it properly...if you do it properly, the whole process is about as anti-climatic as you can get. (B) Read up how to DE-SOLDER. There is two things you can really use to de-solder...a solder wick (my preference) and a desoldering gun (essentially a little mini vacuum pen thing that sucks the solder up after you heat it up).
My first chassis took me 3 hours to complete. The second one (same G07 type board) took me about 1/2 as long. The 3rd board I did in about 45 minutes (though there WERE less caps)...
Good luck.