Physically it's the reflection that peaks where the light's angle of incidence roughly matches the viewing angle. On screen it's faked with a small radial-gradient of white laid over the surface.
Moving that highlight to follow the pointer (or device tilt) in real time makes a flat surface read as a curved, reflective one. Liquid Glass and holographic cards both build on this trick.
Move your pointer over the demo card — the highlight follows. Leave it alone and it drifts on its own.
When to use
A subtle highlight on a button or card doubles as an affordance signal that it’s interactive. Keep opacity low — overdone, it looks dated.