Html msg is a Type Alias for Node msg, which is a Generic Union Type
Union Type Node msg
It only makes sense to reason about Node msg type signature in a context of Elm Architecture, where all input for your application, except flags for Http.App.programWithFlags, is happening through messages.
msg type variable in Node msg is only hinting you towards the idea, that all messages from your DOM sub-tree should belong to a single union type.
node
    :  String
    -> List (Attribute msg)
    -> List (Html msg)  -- List of children nodes with a msg
    -> Html msg         -- Produced DOM node
How div function uses generic Union Types
Thanks to msg type variable, Elm compiler knows, when your DOM tree is correct in the context of Elm Architecture.
In JavaScript world Node value of Node msg Union Type is representing the object with the following structure:
{  
   "type":"node",
   "tag":"div",
   "facts":{},            // Attributes and DOM events
   "children":[],         // Children, have the same structure
   "descendantsCount": 0  // Used for Virtual DOM diffing
}
How you can use generic Union Types
Most of the complex core data structures are implemented using generic Union Types, check Maybe or Dict to get inspired.
Html msg and user-defined generic Union Types
Html msg in particular is somewhat magical, but you can implement some interesting structures, like linked lists or other tree-like structures.
type List a =
  Empty | Node a (List a)