The wideband controller is simply a controller + wideband oxygen sensor. Wideband oxygen sensors are capable of accurately measuring the air-fuel ratio (AFR) over a wide range, easily from 10:1 up to 20:1. However, they cannot work "standalone" like the older narrowband sensors. They require a controller. The Innovate LC-1 is the controller.
The older narrowband sensors were only accurate at 14.7:1, which is the chemically correct ratio of air and fuel for a complete burn -- However, 14.7 is neither ideal for power or economy, but is good for emissions when combined with a catalytic converter.
12.5:1 is considered ideal or near ideal for best power. Best fuel economy can be achieved at ratios of 16:1 or 17:1. I'll bet if you look at your dyno sheets from the Camaro, you'll see an AFR scale at the bottom.
So the wideband controller outputs a voltage to correspond with the measured AFR. In Megasquirt setups, it's usually 0V at 10:1 and 5V at 20:1 (and it's a linear scale in between). Megasquirt can read this voltage. For comparison, narrowband sensors output from 0V to 1V and 14.7 is .5V
So in the Megasquirt software, we have an AFR-Target table. It's a table with RPM on one axis and the MAP sensor (vacuum, measured in kPa) on another axis. So at 4000 RPM and 100 kpa (full throttle), we might have a value of 12.5 in the AFR-Target table. If Megasquirt sees an AFR of 14, it'll add fuel. If it sees AFR of 10, it'll subtract fuel. At 2000 RPM and 50 kpa (cruising speed), you might want an AFR of 15 or 16 for good fuel economy. So when you combine this table with the wideband, you have a setup that can basically tune itself to whatever values you put in the AFR-Target table. Shown below is an example AFR Target table (not mine)
These wideband controllers are still useful even if you're running a carb. You'll need some sort of gauge to read the voltage, but it's still the manual process to change jetting to change the AFR. You don't need to bother pulling plugs to try and read rich or lean.
Hope this helps a little..
-Dave