The skill has a single function - each time you spend 10 mind runes on the skill, it immediately gives you 10 might and 10 magic runes in return. You can do this up to three times.
The skill has no ongoing effects, so it doesn't affect the number of runes you gain at level up, or if you find runes while scouting around.
That said, it's one of the best skills for a paladin to focus on, as it opens up all sorts of possibilities to add skills from the warrior and mage skill trees. A paladin will never be a good a mage as the mage, nor as good a warrior as the warrior, but he can be a pretty good mix of the two, with his own paladin skills added in. In many ways, I enjoy playing paladins the most, even though warrior is definitely easier.
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