It refers to the instance of that invokes the method, in this case an instance of TestCalc. However, you never see the instances specifically, unless you write your own test runner. Otherwise, you typically only interact with the instance (aside from calling the various assert* methods) if you override setUp to configure the fixture.
For example,
class MyTest(unittest.TestCase):
def setUp(self):
self.x = SomeClass()
def test_foo(self):
self.assertEqual(self.x.foo(), 3)
def test_bar(self):
self.assertEqual(self.x.bar(), 6)
x is an instance of a class that you want to use in multiple tests. Rather than call x = SomeClass() in every test method, you call it once in setUp and save the result as an attribute of the test case itself, making it available to each test method.