The idea was that most people in capitalist countries were oppressed by the economic system, and that in the people's democracies they finally had a chance to have a say in how the country was governed, through workers' councils, a Party that represented them, and various forms of collective rule.
The difference was that one is real democracy, and the other a sham. But notice how even the most authoritarian states go to great lengths to pretend they have broad social support. Everyone loves democracy!
"As a result of their reorganization on democratic principles, in such former enemy countries as Bulgaria, Finland, Hungary, and Romania regimes have been created which have set themselves the task of strengthening and maintaining friendly relations with the Soviet Union. In the Slavic countries - Poland, Czechoslovakia, and Yugoslavia - liberated by the Red Army or with its help, democratic regimes have also been created and are consolidating which maintain relations with the Soviet Union on the basis of friendship and mutual aid agreements."
There were solid reasons those "former enemies" were enemies.
One striking thing to me there is the consistent use of "democratic" and "democratization" to refer to governments that the U.S. referred to as "communist". (For example, Novikov says that an important outcome of the Soviet military role in Eastern Europe was the creation of democratic regimes friendly to the USSR, and complains that the U.S. will not agree to the democratization of postwar Germany.)