Once you unwrap the geometry of your head for texturing purposes, it'll looks something like that (like the skin torn off of a head and spread out like a sheet). Then, once the map is ready for texturing, an image very similar to the one you posted will be painted and applied as the texture.
mahmoudnahmad
1,159 posts
02 Aug 2008
within max there is a tutorial on something similar, in the help files look into the how to create a game character (section textureing)