CssBaseline is sort of css reset added to the <head /> of your document. If you are familiar with similar approaches like normalize.css which adds some default visual styling to default elements, resets paddings and etc …
Material-UI provides some reset styles as you can observe here CssBasline.js mainly box-sizing and body font color and background color
'@global': {
html: {
WebkitFontSmoothing: 'antialiased', // Antialiasing.
MozOsxFontSmoothing: 'grayscale', // Antialiasing.
// Change from `box-sizing: content-box` so that `width`
// is not affected by `padding` or `border`.
boxSizing: 'border-box',
},
'*, *::before, *::after': {
boxSizing: 'inherit',
},
'strong, b': {
fontWeight: 'bolder',
},
body: {
margin: 0, // Remove the margin in all browsers.
color: theme.palette.text.primary,
...theme.typography.body2,
backgroundColor: theme.palette.background.default,
'@media print': {
// Save printer ink.
backgroundColor: theme.palette.common.white,
},
},