Split GPG implements a concept similar to having a smart card with your private GPG keys, except that the role of the "smart card" plays another Qubes AppVM. This way one, not-so-trusted domain, e.g. the one where Thunderbird is running, can delegate all crypto operations, such as encryption/decryption and signing to another, more trusted, network-isolated, domain. This way the compromise of your domain where Thunderbird or another client app is running – arguably a not-so-unthinkable scenario – does not allow the attacker to automatically also steal all your keys. (We should make a rather obvious comment here that the so-often-used passphrases on private keys are pretty meaningless because the attacker can easily set up a simple backdoor which would wait until the user enters the passphrase and steal the key then.)
More in-depth usage information can be found here.
