From my understanding, resetting defaults sets all the elements that
have not been assigned a certain property the property specified in
the * selector above.
Yes, that's about correct. It's mainly used to change the values from their default values to a certain value specified by us
Resetting your styles, commonly referred to as CSS Reset or Reset CSS is the process of resetting (or more accurately – setting) the styles of all elements to a baseline value so that you avoid cross-browser differences due to their built-in default style settings.
In case you didn’t know, every browser has its own default ‘user agent’ stylesheet, that it uses to make unstyled websites appear more legible.
Need for CSS Reset -
Using a CSS Reset, we can force every browser to have all its styles reset to a value specified by us, thus avoiding cross-browser differences as much as possible.