Moi's title is taken from Edward Albee's play Who's Afraid of Virginia Woolf, which in turn is a play on the phrase "who's afraid of the big bad wolf?" from the fairy-tale "Little Red Riding Hood."
Moi doesn't discuss Albee at all in her essay, but she does focus on feminist misreadings of Woolf's work, especially her fiction. The essay's title is in some ways a misnomer, because the essay discusses the way feminist critics such as Elaine Showalter and Marcia Holly misunderstand—and therefore dismiss and belittle Woolf—rather than fear her.
Moi, writing in 1985, shows that critics like Showalter reject Woolf because Woolf does not write in a realistic tradition. Moi, however, argues convincingly (especially in light of all we know 35 years later) that Woolf's subjective modernist style is itself a feminist revolt against the assumption of "all knowingness" in realist fiction. Moi implicitly asserts that we should not be "afraid" of Woolf's modernism—her fluidity, lack of objectivity, and stream of consciousness—as reactionary and anti-feminist, but rather understand it as a manifestation of an attack both on patriarchy and the associated social structures which keep oppression in place.
Moi leans in to Kristeva, who envisions some later stage in history when people "reject the dichotomy between masculine and feminine as metaphysical," asserting that this is, in fact, Woolf's vision and desire too. (Interestingly, we are now at that stage in rejecting gender binaries, a stance that seemed completely "out there" and unrealistic in 1985.) In any case, the point is that Moi does correctly argue that Woolf's experimental writing style is not at odds with her feminist political stance but an expression of it. This is Moi's key point.
The essay is interesting because Moi gets it exactly right, but a reader can easily get mired in the Marxist and feminist debates of the late 1970s and early 1980s that seem dated at this time.
In a nutshell: we should not fear Woolf as a "reactionary" because of her writing style: her writing style is part of her attempt to undermine patriarchy and create new, more life-affirming politics.