What semoochie said is correct, but I thought you might want to know why.
Here's a good brief tutorial on the subject:
http://www.silabs.com/Marcom Documents/Resources/FMTutorial.pdf
Skip the whole section on "FM Basics" as the scientific notations will give anyone but the hardest-core engineer an Excedrin headache. What you want to know is in the section on "Stereo FM-Multiplex Signal" on pages 6 and 7.
Look at Figure 6 on page 7 and you can see that the L-R component used to decode stereo is modulated at one-half the L+R (mono) component. That means there is much greater potential for the noise and multipath interference that semoochie referenced. (You can stop reading after that diagram, as there are more mathematical calculations designed to give you more headaches.)
The other reason, tucked away in the text on page 6, is that the L-R component is amplitude modulated (AM) so as not to interfere with the L+R (mono FM) component for receivers that are not decoding stereo. That makes the L-R portion of the signal more interference-prone, which adds to the potential for it to "fuzz up".
When you switch the receiver to "mono" it no longer pays attention to anything but the L+R signal, so all the possible reasons for "fuzziness" are no longer a factor.