James' definition is basic what I've thought it to be. Measuring performance to establish a baseline starting point and comparing current condition against manufacturer spec. The truck had a starting point at zero miles and a baseline would be to go down the list and compare the current condition against that, then determine what needs to be replaced, rebuilt or modified to meet your needs.
For example, when I bought my truck I checked the engine compression, valve lash, brake rotor/drum run-out, pad/shoe thickness, that sort of thing. Being of sufficient age I did a timing component replacement, replaced wheel bearings, had the driveshafts rebuilt (new u-joints and rebalance), did a complete lube and fluid change, rebuilt the front end (new ball joints and tie rod ends). This was just the stuff to make it reliable and ease my mind.