Background mesh is a basic (initial) mesh to be modified and/or refined. Entire surface model must be placed inside the background mesh. Background mesh is created using blockMesh utility. Background mesh is simple block a bit larger than bounding box of the surface model. Alternatively, background mesh can be used to create inlet or outlet of the final mesh (not this case).
Dictionary for blockMesh utility have to be placed in constant/polyMesh/ directory. The blockMeshDict file is already created: