Cloaking is a Black hat Seo technique in which you show some different page to Google and some other page to user. It helps in increasing your ranking but if Google or any other search engine finds it then your site will get spammed and all your reputation will get finished.
Cloaking in SEO is refer to the content represent to the search engines is different from that of the users browsers. This is done by delivering content based on the IP addresses or the User-Agent HTTP header of the user requesting the page.
Cloaking in SEO - a website that returns different webpages to search engines and the visitors. In other words, a visitor will see different content on the website than the Google bot or other search engine.This type of techniques are used to rank the webpages on search engine.
This is a black hat seo technique and not used these days. Google search engine highly penalize sites who use that type of techniques to rank.
This can range from hiding a long affiliate link so users don't see it popup in their browser window when they roll over a link, to receiving the search engines by showing search spiders a "sanitized" version of the page with spammy commercial links and promotional content removed, search engines hate this sort of cloaking and when caught is likely to get a page removed from the index.
cloaking is not good for SEO because Cloaking is a black hat technique of SEO.