It's the range in which the highest ratio of power to performance can be had for a given architecture.
I did a quick chart just as an explainer.
The X axis is performance
The Y is voltage (or power, either would do in this instance).
The highlighted red area is the sweet spot.
View attachment 370229
The sweet spot's start and end is mapped to two notable drops in perf per watt, providing a range in which users can tune voltages and power to depending on their performance requirements. A person who favors power consumption can pick the point all the way to the left of the sweet spot, which would provided the highest efficiency possible. A person who wants as much performance as possible while maintaining reasonable efficiency would pick the point all the way to the right. In general CPUs using the same architecture should have the same sweet spot, with some variance due to silicon quality.
If the 14900K or 13900K was mapped to this chart, the tail end to the right of the sweet spot would be very longs as these architectures see small gains above 125w, so it's a small amount of performance dragged over a large power increase.
Not referring specificially to the KS models hence why I made a broad statement regarding 13th and 14th gen but my statement definitely applies to them. Yes they can in general get a higher frequency at a lower voltage compared to stock models but the point of my argument was to point out the voltage headroom Intel left on the table. This problem still exists for the KS models.