CR0 is one of the control registers available on x86 CPUs, which contains flags controlling CPU features related to memory protection, multitasking, paging, etc. You can find a full description in Volume 3, Section 2.5 of Intel's Software Developer's Manual.
These registers are accessed by special instructions that the compiler doesn't normally generate, so read_cr0() is a function which executes the instruction to read this register (via inline assembly) and returns the result in a general-purpose register. Likewise, write_cr0() writes to this register.
The function calls are likely to be inlined, so that the generated code would be something like
mov eax, cr0
or eax, 0x10000
mov cr0, eax
The OR with 0x10000 sets bit 16, the Write Protect bit. On early 32-bit x86 CPUs, code running at supervisor level (like the kernel) was always allowed to write all of virtual memory, regardless of whether the page was marked read-only. This bit makes that optional, so that when it is set, such accesses will cause page faults. This line of code probably follows an earlier line which temporarily cleared the bit.