This command notifies the memory manager that specified regions of RAM ought to be filtered out (usually, because they're damaged). This remains in effect after a payload kernel has been loaded by GRUB, as long as the loaded kernel obtains its memory map from GRUB. Kernels that support this include Linux, GNU Mach, the kernel of FreeBSD and Multiboot kernels in general.
Syntax is the same as provided by the Memtest86+ utility: a list of address/mask pairs. Given a page-aligned address and a base address / mask pair, if all the bits of the page-aligned address that are enabled by the mask match with the base address, it means this page is to be filtered. This syntax makes it easy to represent patterns that are often result of memory damage, due to physical distribution of memory cells.