So we have the factory Material, and we have baked Materials that we can use.

Yep.

What are baked Materials?

So baked Materials, you make a relatively high-resolution version of the mesh, and then you have a low-resolution version of the mesh, and then you project the geometry onto the texture.

Let's say it that way.

So you bake down how the light should react to the geometry.

Right.

So is it like you gather all the lighting information or whatever off the high res mesh and convert that down into a texture and then you slap it on the low res mesh.

So it looks like it has all the lighting information.

Yes.

But it doesn't.

That's how it works indeed.

It's

simplified.