First off,
When artists recorded their material, they used what are called original master recordings.
The quality of these recordings is awesome, far far better than anything laid down on vinyl.You would be amazed at just how good studio recordings from the 1950’s can be.
Next those original master tapes are mixed onto another tape, the vinyl master tape, these too are very high quality, but, part of the mixing process is to address the limititations of the vinyl medium.
The faster any medium passes a replay head, the higher the quality of sound is that can be reproduced, original master tapes pass very quickly, and they are also very wide, meaning that there is a large area of media available to contain music information.
The same is true of vinyl, the faster the rotation speed, the better recording is possible.
Vinyl speed slowed over the years, from 78 down to 33, and some folk might even have 16rpm discs.This was made possible by improvements in recording technology, and disc manufacture, but the result was that dynamic range suffered.
To get around this a set of compressions standards (RIAA compression) became the industry standard, and it basically squeezed music into a narrower dynamic band that could be laid down on vinyl, and all turntables were built with amplifiers in them that could expand this signal range.
Even so, vinyl still could not hope to match studio quality. Vinyl master tapes are mixed down with all the RIAA equalisation characteristics on them, and also account for other limitations of vinyl.
When you master for a CD things are very differant, you don’t need all the jiggery pokery to mix the signal, a CD can cope with original master recording quality.
Artists and engineers will try to go back to those original master tapes if they can, and being inveterate meddlers, they will try to improve on this, knowing a CD can handle it.
Original Master recordings have a very neutral sound, they don’t emphasis things, nor take anything away, and just like the conductor in an orchestra, artists and engineers will want to bring certain instruments or voices to the fore at certain times, or they may spot things they wish they had corrected in the original recordings such as the odd bum note.
Lots of this can be edited by converting the original master tape to a digital format, and use software editing.
Sometimes the origianl master recording is not available, or damaged, and they will go to the vinyl masters, which then means trying to recreate those original tapes by reversing the effects of the vinyl mastering process.
This is not an easy task and sometimes there is quite a lot of artistic interpretation of what was intended, the result is then a CD master.