I googled it and couldn't find a definition. As usual the Android documentation was very "illuminating".
4 Answers
In a nutshell, it is your lockscreen.
PIN, pattern, face, password locks or the default lock (slide to unlock), but it is your lock screen.

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1is that the same as keyguard restricted mode? Just tried KeyGuard.inKeyguardRestrictedInputMode() with the phone on my lock screen and it returned false – U Avalos Jul 18 '13 at 23:47
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It can also handle the SIM card's PIN, so this parameter maybe refers to that. – Pethő Jonatán May 13 '16 at 05:31
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Jesus Christ, I had to read all above "answers" and it still wasn't clear. Thank you for clarifying. – Draghon Sep 24 '17 at 03:03
Keyguard basically refers to the code that handles the unlocking of the phone. it's like the keypad lock on your nokia phone a few years back just with the utility on a touchscreen.
you can find more info it you look in android/app
or com\android\internal\policy\impl
Good Luck !

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The lock screen works without keyguard i have tested it. The home button stops working and you can't get to task manager by holding the home key. I wish they didn't develop a new process when it used to be built into system ui or whatever. I don't see the need for the change and extra process

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Yes, I also found it here: http://developer.android.com/tools/testing/activity_testing.html It's seems a key-input protection mechanism which includes the screen-lock, but not only includes it. According to this webpage, it also defines some key-input restriction for auto-test framework in Android.

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