Cycling will work by burning calories and toning the muscles underneath but it won't necessarily burn off cellulite on it's own. That's going to be a result of losing fat from all over your body rather than from a specific exercise. Cycling will definitely help but you'll also need to watch your nutrition to lose fat.
Here are some links that will help you with fat loss:
|The 7 Biggest Training Mistakes I've Ever Made|
|(This is Nuts) Power-Start Lactic Acid Training for Legs|
|7 Simple Rules for What You Should Eat|
|How to Gain an INCH on Your Arms in 6 Minutes|
And see every new exercise and training technique the moment I load it up!