I'm presuming this is related to the SMPS repair you posted about recently?
My understanding (and we'll see how good that is) is the following:
It refers to what is the input to the "primary" control loop. That is, does the feedback loop of your regulated power supply monitor current or voltage?
Once you have a "primary" control loop, a second control loop can be added on top to regulate the actual output of the power supply in the way that you want - that is to say, "current mode regulation" does not imply that the complete SMPS will have a constant-current output.
For example, the IC you've mentioned is a common controller for flyback converters. It implements its control by monitoring the current flow through the transfomer and switching the power transistor off once this current exceeds a certain threshold, which is set by a voltage applied to an input pin. The remainder of the fixed-period cycle is spent in this off state and, by the end of the cycle, (for the sake of this example) the current has fallen to zero. Therefore, the average current through the transformer (and therefore out of the power supply) varies in proportion to the "threshhold" current at which the controller trips into the off state, and therefore also in proportion to the voltage applied to the control pin.
We therefore have a power supply whose current can be programmed by a voltage suppled to a pin on the controller IC. This is our "primary" control loop.
Assuming we actually wanted a power supply to produce a steady voltage, a second control loop can now be added whose job is to increase the current whenever the output voltage is low (ie, below where it should be), and reduce the current if the output is high.
I hope this makes sense, it's a simple concept but not necessarily one that's easy to explain... It would probably make more sense with a diagram. I also may not have used all the right terminology here - sure someone will clarify if not.