Annealing softens steel so it's easier to work. I suppose if you don't know steel is hardened/hardenable, then that doesn't make much sense. Just in case, see the short summary below.
Steel used in cutting tools, among other things, is heat treated to harden it and make it stronger. That way it can be ground to a sharp edge and not bend or break when cutting things. Steel is heated to somewhere over 1400 degrees farenheit and quenched. I say somewhere over 1400 because the exact temperature is different for different types of steel. After quenching, the steel is very hard, and very brittle. It is then tempered (aka drawn) by heating to a lower temperature to soften it, but add toughness. This is generally between 350 and 1000 degrees F, again depending on steel type and the exact use for the tool. If bush-haus had not annealed the steel, his file would never have been able to cut it in his lifetime. Annealing involves heating the steel to an elevated temperature, above 1200 deg. F. and then slowly cooling it, as opposed to quenching it in water, oil, etc.
All the temperatures mentioned are highly dependent on steel type, for quenching, tempering, and annealing. Different grades of steel can have such a wide range of properties that some have to have a water quench to harden, while some can be quenched by holding them in front of a window fan. Time is an important factor as well. Some steels need to be held at high temperatures for quite a while to get the desired properties. Tempering, or drawing, is typically done for at least an hour, and I've seen as much as 6 hours recommended.
There I go again with another wall o' text.