You can download v1.2 at the Download Dart page.
If you are running the Dart Editor v1.1 you can update by checking "About Dart Editor".
VM changes include:
Improved debugging experience. Highlights:
Fix stepping in recursive functions
Allow breakpoints at local variable assignments
Eliminate side-effects when interacting with the debugger
Reduce memory overhead of parameterized types
Many performance and stability improvements
SDK changes include:
dart:io (these are all the changes since 1.0)
WebSocket throughput improved by 15x
Async primitives speedup of 10-20%
dart:mirrors
Optimized reflective access to fields (InstanceMirror.getField)
Dartium built on Chrome 33 Beta
New dartdoc generator (docgen)
Preview of Dart formatter (dartfmt)
Note: the formatter is under active development. Please use with care and report issues.
Pub changes include:
Support for “lazy transformers” like dart2js. Improves startup time of pub serve, especially in packages with many entrypoints.
Handle .dart.precompiled.js and .dart.js.map files in your package.
Proper MIME type handling in pub serve.
Assets in your dependencies’ “lib” folders will be copied to “packages” in pub build.
New pub cache add command to download a package into your system cache.
Support for configuring dart2js from your pubspec.
Editor changes include:
Extensive Angular support.
Search and navigation support for Angular elements.
Rename refactoring support for Angular elements.
Angular-specific warnings.
Access to dartfmt preview via “Format” command added to the right-click context menu for Dart files
Allow renaming when pasting a file.
Add @override when creating missing overrides.
Run as JavaScript uses pub build to generate JavaScript.
Run in Browser context menu for launching files in build directories.
Various code completion fixes and improvements.
Various auto-indent fixes and improvements.
Significant performance improvements.
dart2js changes include:
Metadata @annotations work on parameters
Lots of bug fixes