Many blocks turn into something else when they are broken - smooth stone turns to cobblestone, dirt with grass turns into regular dirt, diamond ore turns to diamonds, for example.
What silk touch does is lets you mine the original block without it turning into the broken version. So you'll be mining and collecting smooth stone, dirt with grass and blocks of diamond ore.
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(Example) You have a silk touch iron pick and your in a cave. You find diamonds and mine them, but instead of diamonds, you get diamond ore!
Efficiency, Silk Touch, Unbreaking and Fortune.
You can get a mob spawner in Minecraft by using any pickaxe (except wood) with Silk Touch 1 enchantment or by spawning it in (Dec:52).
No, the pickaxe needs to be at least iron to mine the diamond.
The previous information was incorrect, so here is what you can do. Minecraft has an enchanting system, and at level 28 of the enchantment table, your pickaxe or shovel will turn into Silk Touch if you enchant at level 28. Go outside, or where grass is, and harvest the grass with the pickaxe - yes, the pickaxe (with silk touch)! This will give you the grass block.