I can give you your answer, but you'll have to give me mine. I'm confused.
Do you mean the cutscene right at the start of the game? Do you mean later on when Count Arrasies is talking to you?
Are you talking about an item? There may have been a book in the game by that name, I can't remember.
The cutscene at the start is supposed to tell you all of the background of the factions and the events that have lead up to then - the first Kingdom of Calradia, the takeover by the Durhua Empire, and then the rise of King Leon and 2nd Calradic Kingdom, and then the fracturing of the kingdom into the five respective nations of Swadia, Vaegirs, Rhodoks, Nords and Khergits.
Arrasies is also giving you background later on, to explain why the story's events are happening. Context context context.
I remember there being an "Encyclopedia of Calradia" that gave you a bunch of bonus stats if you got both halves, but I can't remember exactly what it did.
Does that answer your question? I'm confused too.