I have only very little experience with CC, but I will try:
Governor is a system which has to keep cosnstan RPM by managing the input power.
It is some kind of regulation system with feedback, and thus it can come to troubles like too slow regulation or oscillation (overregulation). Proper regulation depends on mass inetria on shaft, what is big problem os Helis, wrom which we got governors, so ESCs has typically setting for speed or gain of regulation depending of attached prop. Means you have to keep gain or speed of regulation as stron/quick as possible, but no more than speed/gain where system oscillates (unting rpm). For example Jeti Spin has something called "sensitivity" and we use value 1 - what means quickest regulation.
Timing has nothing to do with governor, it changes commutation. ESC does function of commutator known from DC motors. That commutation can be in some cases few degrees earlier, just to force current in winding earlier than magnets come, what allows higher power (higher RPM) on cost of little lower efficiency. The advance depends on winding inductance and every producer recommends optimal value. Optimal means good power, but not yet too low efficiency.
Wrong timing can sometimes cause lost of synchronization between rotor and virtual commutator (in the program) and it can happen typically when timing is out or usefull values.