You can think of it as limiting the amount of effect the bypass capacitor has on the cathode bias by adding resistance in series with the cap to ground.
The bypass capacitor doesn't have any effect on the cathode bias voltage. The cathode bias voltage is a DC parameter and the bypass capacitor works by passing AC.
A large bypass capacitor eliminates the negative feedback that was created by the AC voltage across the cathode resistor. A large bypass capacitor appears to be a straight piece of wire as far as AC is concerned. A potentiometer in series with the large capacitor then appears to be a variable resistor in parallel with the cathode resistor for AC purposes. The larger the variable resistance, the larger the negative feedback from the voltage drop across the effective cathode resistance. When the variable resistance is set to zero, all negative feedback from the cathode is gone and the stage has its maximum gain.
One of the features of parallel resistances is that the resulting resistance changes exponentially with a linear change in one of the resistors. Consequently, the gain of the stage in question will vary exponentially with a linear change in the pot that is in series with the bypass capacitor. Also, most of the gain variation is going to happen when the pot goes from zero to 5K when the cathode resistor is 1K5.