You're actually doing it, except when you don't declare a background color for the html element, it then takes the background color of the body element. Hence, you're not seeing the difference.
Simply give the html element a different background color, and also give body some height:
html {
background-color: red; /* new */
}
body {
border: 1px solid black;
width: 500px;
height: 500px; /* new */
margin: 0 auto;
background: black;
}
Understanding the relationship between html, body and background-color.
The initial background-color for all elements is transparent.
If the background-color of the html element is not specified (i.e., transparent) then, under the rules of CSS, the browser gives it the background-color of the body element.
From the spec:
3.11.2. The Canvas Background and the HTML <body>
Element
For documents whose root element is an HTML HTML element or an XHTML
html element: if the computed value of background-image on the
root element is none and its background-color is transparent,
user agents must instead propagate the computed values of the
background properties from that element's first HTML BODY or XHTML
body child element. The used values of that BODY element's
background properties are their initial values, and the propagated
values are treated as if they were specified on the root element. It
is recommended that authors of HTML documents specify the canvas
background for the BODY element rather than the HTML element.