This is a special indicator that a Shadow DOM exists. These have existed for years, but developers have never been given APIs into it until recently. Chrome has had this functionality for a while, other browsers are still catching up. It can be toggled in the DevTools Settings under the “Elements” section. Uncheck the “Show User Agent Shadow DOM”. This will at least hide away any Shadow DOMs created internally (like select elements.) I am unsure right away if it affects user-created ones, such as custom elements.
These come up in things like iframes as well, where you have a separate DOM tree nested inside of another.
The Shadow DOM is simply saying that some part of the page, has its own DOM within it. Styles and scripting can be scoped within that element so what runs in it only executes in that boundary.
This is one of the primary pieces needed for Web Components to work. Which is a new technology allowing developers to build their own encapsulated components that developers can use just like any other HTML element.