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There's no explanation for what the ControlNet feature is anywhere.

It's a way of controlling how the image generates using some input images. You can read about it here: https://stable-diffusion-art.com/controlnet/ (This is about general controlnets and how they work)
Or you can see a video I did going over how they work in Retro Diffusion here:

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I already bought full RetroDiffusion long time ago, so this question is not for me, but could be good to know for future users.
Can the "lite version" be upgraded into the "full version" by paying the price difference? That'd be very nice for new/potential users, since they could try a cheaper version of the tool, and if they like it, they could then go for the best version of it :)

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Yes! Absolutely. I included that info in the download section of the gumroad page, but forgot to put it in this page :)