Think of it this way: The slower your encoder preset is set, the more CPU cycles it will take to encode each frame -- the more cycles (time) your CPU spends on each frame, the higher the quality its output will be.
Of course, if a frame takes longer than 1/30 (or 1/60, at 60FPS) to encode, that means that your CPU isn't able to encode in real-time, which degrades quality of output, and thus should be avoided. The slower you go, the more likely this is to occur. Any other variable loads (say, the games you're playing) should also be accounted for, so that your CPU doesn't get overloaded and have trouble keeping up -- leave some headroom, especially if you're playing on the same machine you're encoding on.