What is 'controller smoothing' ?
If you have an discrete controller for example setting reference velocity from 45mph to 60mph after a sign, you can have the reference move like a second order system(spring mass dampener) for example so the actual reference at t=0.01s is 45.1mph and at t=0.5s is 50mph etc. This to decrease the absolute value of the jerk(change in acceleration) which humans tend to find uncomfortable.
Or if you use a Model Predictive Controller (MPC) you can set a slightly larger penalty on change in the control signals in your optimization algorithm.
Basically it makes the car less aggressive and more smooth.