The Schuler cycle in Inertial Navigation Systems is essential for correcting errors in acceleration measurements due to the non-gravitational components. It involves understanding the relationship between true and estimated positions, where the angle between the radii from the center of the Earth leads to an acceleration error. This error is calculated using the small-angle approximation, resulting in a differential equation that describes a sinusoidal motion. The cycle has a period of approximately 83 to 84 minutes, which is derived from the Earth's radius and gravitational acceleration. This fundamental concept is crucial for maintaining accurate navigation over time.