It's the (idealised) ratio of chamber pressure when at TDC to atmospheric pressure.
Correct me if I'm wrong, but AFAIK it's worked out by the formula
PV=nRT
or assuming T, n, R are constant, and normal letters are initial states and italics are final states,
PV=PV, P=PV/V
where you know
P (atmospheric), V (chamber volume + displacement for each cyl.), V (chamber volume) and want to find P.
and then CR is
P/P