Concrete "cures" - it doesn't "dry." Well, actually it can dry out, but that is a bad thing.
If you look at the strength of concrete as it cures, there are points at seven days and twenty-eight days where the graph of the strength tapers off. At seven days it has reached 2/3s to 3/4s of its design strength and at 28 days it has reached the design strength - but it actually continues to get stronger after that. But if it dries out early, the reaction of the cure stops and with it the increase in strength. So if you let it dry out in two or three days, it could only be half the strength you ordered - 2000psi instead of 4000 psi. The other issue is letting the surface dry out while the rest of the slab is still moist - this will result in spalling.
So the idea with water curing is to keep the slab moist long enough for it to reach a high enough strength. A lot of places use a sealing compound that is sprayed on to trap the moisture in the concrete - like putting plastic wrap over food in the refrigerator to keep it from drying out. But many people feel that actually keeping the concrete moist is better. There are different ways to do this. Burlap laid over the concrete and kept moist is one. Plastic sheeting is another. There are others. However, you do want to let the concrete set up so first so that you aren't washing any of the cement away from the sand and aggregate - one problem with people just leaving a sprinkler running or something like that.
Adding water during the pour is another matter. Typically you ask for a certain "slump" to the concrete - that is that the concrete has stiffness when it is poured. This is all part of the calculation of its design strength. If you add too much water while pouring, you dilute the mixture and it again never reaches its design strength. Again, this is part of the equation with the concrete curing instead of drying out. A certain amount of water initially is part of the equation - if there is too much water it "overloads" the equation.
Hope that helps somewhat.