It converts a Quaternion into a Vector3 in which X, Y, and Z are measured in degrees
Simplfying the math: Unity uses Quaternions internally to avoid Gimbal lock.
The Euler XYZ (Pitch, Yaw, and Roll) axises can lock up when two axies are aligned.
Quaternion.Euler converts the Euler number provided to the internally used Quarternion, to prevent this problem.