Key bounce is a term used to describe the fact that when you use a mechanical switch, the switch contacts will sometimes bounce against each other before they settle in the "on" position. This can make it look like the switch was hit multiple times, very quickly. The debounce circuit will eliminate these fast multiple open/close switch cycles so that each switch activation results in only one off-on cycle.
The oscillator is a circuit that drives the sequential logic to scan through the switch array, looking for switch closures.
At pin 7 of the MM74C923 there is a "Keybounce mask" capacitor.
The value is about 10 times that if the oscillator capacitor.
See the attached datasheet for more info.