According to iPhone Hellas who published the screenshot above, the update will allow users to add bulleted lists, links, underlined text, new fonts and font colors to the Notes app. This seems to coincide with the launch of the Notes app for OS X Mountain Lion which will also feature rich text formatting.
Given how OS X Mountain Lion is said to feature deeper integration with iCloud, it looks like Apple might be looking to give Evernote a run for their money! iOS 5.1 has yet to receive a release date, but the rumors are suggesting the 9th of March, two days after the rumored iPad 3 launch – coincidence?