Definitions of terms used in the Mudbox Help listed alphabetically.
In rendering, the process of rendering illumination, shadow, shading, and textures to a file texture or to per-vertex color mesh. Baking lets you extract detail from very high resolution models to produce a texture map that lets you obtain lighting effects on a lower resolution version that would be difficult to achieve in other ways.
When extracting a displacement map, a 2D image is produced that records height information for points on the model as grayscale information. Displacement mapping allows a texture input to subsequently manipulate the position of vertices on rendered geometry. When a displacement map is applied to a polygonal model, the faces are offset or displaced from their original positions at render time, based on the grayscale information, to produce a detailed effect.
Mudbox provides two layers types: Sculpt and Paint. Sculpt layers are overlays of sculpting information laying over or under other overlays of sculpting information that record sculpting as the delta between the base mesh and the other layers. Paint layers are images laying over or under other images. All layers taken together comprise one complete texture or sculpted model. Layers let you separate or hide parts of your sculpting or painting and let you iterate your work in a non-destructive manner.