How does this code calculate the number of CPU cycles elapsed?

Taken from this SO thread, this piece of code calculates the number of CPU cycles elapsed running code between lines //1 and //2.

$ cat cyc.c 
#include<stdio.h>

static __inline__ unsigned long long rdtsc(void)
{
  unsigned long long int x;
     __asm__ volatile (".byte 0x0f, 0x31" : "=A" (x));
     return x;
}

int main() {
    unsigned long long cycles = rdtsc(); //1
    cycles = rdtsc() - cycles;           //2
    printf("Time is %d\n", (unsigned)cycles);
    return 0;
}

$ gcc cyc.c -o cyc
$ ./cyc
Time is 73
$ ./cyc
Time is 74
$ ./cyc
Time is 63
$ ./cyc
Time is 73
$

How does the rdtsc() function work?