P25 Phase I uses what is known as Frequency Division Multiple Access (FDMA) to divide up voice/data for the users. This means that it divides the frequencies for a single use (frequency division).
P25 Phase II uses Time Division Multiple Access (TDMA). In P25 Phase II, each frequency has 2 time slots which can each be dedicated for a single use. You can think if it as spending half it's time sending information on one talkgroup and the other half sending information of another talkgroup if you would like (time division).
A large part of Phase II's appeal is that you can effectively double the amount voice traffic carried per frequency. This achieves the FCC desired 700 MHz narrowband (6.25 kHz) efficiency that they attempted to mandate. The FCC has since lifted narrowband requirements for 700 MHz.
The image below has a visual representation of this, you can think of
Analog as P25 Phase I and
TDMA as P25 Phase II. If you would like, I could take some time to create a more P25 specific example.