A set of polynomials (constant, linear, quadratic, etc.) is used in the design matrix. This is supposed to capture the baseline signal level (such that any deviations above or below this baseline due to the experiment is captured by the experimental regressors).
The amplitude (beta weight) associated with the regressors is estimated, and these are by default divided by the mean of the entire voxel (over time) and multiplied by 100 to create PSC (percent signal change).
You can control whether or not this occurs using the <wantpercentbold> input option.