I promise you, it's definitely not what you think. I'm not going to go into what it is you might think recycled toilet paper may be... but trust me, it's not that. Emphasis on the recycled paper and not on the recycled toilet paper.
Toilet paper is a product we use constantly, and most brands are made from virgin paper. Meaning, lots of trees are cut down so that we can use toilet paper. If you calculate how many trees that means for your own personal consumption, I don't know the math, but it's gotta be up there. And it could be easily avoided.
Shmurat Teva (שמורת טבע) toilet paper, which is available in most supermarkets, is made of quality paper fibers that were specifically sorted and collected for the purpose of making toilet paper. Although it comes in plastic packaging (for packages of 32 rolls), the company emphasizes that the minimal plastic wrap can be recycled. I made the switch about a month ago, and can't really tell the difference (except for that it doesn't smell like pineapples or roses like some other brands of toilet paper which, frankly, I think is a very good thing). And it's definitely not gross... if the whole "recycled toilet paper" thing still freaks you out. I promise.