Let $x$ be a cycle of odd length; say it is an element of $S_N$ for some $N$, and let $X$ be the support of $x$; that is,
$$ X = \mathrm{supp}(x) = \{i\mid 1\leq i\leq N\text{ and }x(i)\neq i\}$$
the elements of $\{1,\ldots,N\}$ that are "moved" by $x$.
Let $G=\langle x\rangle$. Then $G$ is a group of order the length of $x$, that is, $|G|$ is odd. Also, $G$ acts on $X$, by letting $h\in G$ act as $h\cdot a = h(a)$ (note that $h$ is a permutation of $X$).
The Orbit-Stabilizer Theorem says that if $X$ is a set, $G$ is a group acting on $X$, then for every $a\in X$, there is a bijection between the $G$-orbit of $a$ and the cosets of the stabilizer of $a$ in $G$; that is, if we let
$$\begin{align*}
G\cdot a &= \{ g\cdot a\mid g\in G\}\\
G_a &= \{g\in G\mid g(a)=a\},
\end{align*}$$
then
$$|G\cdot a | = [G:G_a]$$
in the sense of cardinality. The bijection is given by taking a coset $gG_a$ and sending it to the element $g\cdot a$ of $G\cdot a$. It is not hard to verify this is well defined and gives the desired bijection.
Note that for $G$, we have that $G\cdot a = X$ for all $a\in X$, since $x$ is a cycle. So $[G:G_a] = |X| = |G|$ for all $a\in X$.
Now let $a\in X$, and we want to verify that the orbit of $a$ under $\langle x^2\rangle$ is all of $X$. Because $x$ has odd length, $|x|$ is odd, so $|x^2| = |x|/\gcd(2,|x|) = |x|$, hence $\langle x^2\rangle = \langle x\rangle= G$; so we have:
$$|X|=[G:G_a] = [\langle x^2\rangle:\langle x^2\rangle_a] = \langle x^2\rangle\cdot a \leq |X|.$$
Thus, we have equality throughout, and in particular $\langle x^2\rangle\cdot a = X$. That is, the orbit of $a$ is all of $X$, so the action of $x^2$ is a cycle.