Cycle time is how long it actually takes to produce one unit at a given step, measured from start to finish of the work. It is an internal, process-driven number — unlike takt time, which is set by customer demand, and lead time, which is total elapsed time including waiting.
Balancing each station's cycle time below takt time is the goal of line balancing. The relationship between cycle time, WIP, and throughput is governed by Little's Law.