A "toothy" edge in regards to a knife edge is the micro serrations caused by carbides which are formed in the steel itself by certain alloying elements, (like chromium, molybednum, vanadium, niobium), reacting with the carbon to form structures within the steel that are harder then the surrounding steel. As the "steel" as a whole wears down and "dulls", these harder surfaces (carbides) don't wear as fast as the surrounding steel does and form a "saw like" edge on the microscopic level allowing a "dull" edge to still ultimately cut reasonably well.
Stainless steels with low carbon levels and carbon steels without the amounts of alloying elements present, while they will still hold a razor sharp edge, they won't form carbides, so when the begin to dull, they're dull, there are no micro "teeth" to help a dull edge to continue to cut...
(often referred to also as a "working edge", because even when slightly dulled by blade standards, it still works surprisingly effectively).