Yes, it's a "mini-program" on the CMOS chip. When you turn on the system, the BIOS performs the POST (Power On Self Test). It initializes several key areas of the system:
Processes the CPU settings
Processes and initializes all the chipsets and hardware settings.
Tests the RAM.
Initializes the keyboard, mouse.
Tests all the ports.
Cranks up the hard drive and floppy controllers.
Then displays the system information and lets you know if there any problems (usually quite bluntly https://discussions.virtualdr.com/).
If all goes well, the OS takes over from that point.
