That's the seal like Robyn said. There's a catch on that though, there's 2 thermostat housing casting types with different depth "depressions" for those. The deeper one is the type with the rubber seal, the shallow one utilizes the old-school gasket. A lot of parts systems/books lists them as interchanable, but in reality they are not. The Made in China thermostats are junk IMO.
Don