Understanding with this WordPress code

wp_nav_menu() is a template tag – that is function designed to be called in theme template file to output something.

This specific function generates and displays output of navigation menu.

Arguments, you are asking about, determine that menu displayed should be looked up by “Main Menu” name and output should not be wrapped in div container, used by default. There are plenty more possible arguments, see its documentation in Codex.

Internally this function also uses Walker-based class to generate output, but that gets into advanced stuff and may or may not be relevant to want you want to accomplish.