This is another way to introduce globbing. Basically, curls tell the operator globto take each element separated by commas and combine all the possibilities.
A more understandable way to see this - comma - is to separate individual outputs:
$ perl -e 'print join ",", <{a,b,c}{1,2,3}>;'
a1,a2,a3,b1,b2,b3,c1,c2,c3
From perldoc -f glob:
, glob, , . , , :
@many = glob "{apple,tomato,cherry}={green,yellow,red}";