This feature was described when it was added, in the post
[libvirt] [PATCH 1/3] network: new network forward mode 'open':
The new forward mode 'open' is just like mode='route', except that no
firewall rules are added to assure that any traffic does or doesn't
pass. It is assumed that either they aren't necessary, or they will be
setup outside the scope of libvirt.
It means that no firewall rules will be automatically added to allow free traffic
on the network.
This is also described in
libvirt: Network XML format,
section
Connectivity
in a similar manner (more wordy but less clear):
open
As with mode='route', guest network traffic will be forwarded to the
physical network via the host's IP routing stack, but there will be no
firewall rules added to either enable or prevent any of this traffic.
When forward='open' is set, the dev attribute cannot be set (because
the forward dev is enforced with firewall rules, and the purpose of
forward='open' is to have a forwarding mode where libvirt doesn't add
any firewall rules). This mode presumes that the local LAN router has
suitable routing table entries to return traffic to this host, and
that some other management system has been used to put in place any
necessary firewall rules. Although no firewall rules will be added for
the network, it is of course still possible to add restrictions for
specific guests using nwfilter rules on the guests' interfaces.) Since
2.2.0