What the bag's label is saying is, the content of KCl in the bags is 62%, if it were converted to K2O. Like Borek: said, this is how, historically, the material was assayed in the past, and we just continue the convention. Often this is done for fertilizers -- KCl, KNO3, NaK-molybdate can all be expressed as amount of K2O. That way you know how much potassium you're adding, even as you add other ions.