That is a part of the small recovery partition (don't remove it or you can't boot into recovery mode) that get's mounted to run the limited OS X in order to make changes to your main disk and run the few utilities it knows about (Terminal, Disk Utility, Safari, Reinstall OS X, Restore from TM backup, Reset Password, Network Utility, etc). The phrase "OS X Base System" is what always appears for an OS X image that is contained in the contents of the recovery volume partition. You can see what is in this small file system if you manually try to mount the "Recovery" partition with something like
sudo mkdir /xxx (use anything you want that doesn't conflict with an existing folder name)
sudo mount -t hfs /dev/disk0s3 /xxx
then look at the contents of the /xxx/com.apple.recovery.boot folder and see what that folder contains. There is a 450MB dmg file that gets mounted to form the "OS X Base System" that you see a file named BaseSystem.dmg -- You could even mount it to see what it contains if you want:
cd /xxx/com.apple.recovery.boot
hdiutil attach ./BaseSystem.dmg
Then you will see the same "Mac OS X Base System" mounted in the /Volumes folder
To unmount the "Mac OS X Base System" volume and clean up (the device associated with this image will vary so look and see what it is on your system using something like:
df -kt
whichever device is associated with the "/Volumes/Mac OS X Base System" mount point is the device to use in the "hdiutil detach" command below - on my system it was /dev/disk4s2:
cd /
hdiutil detach /dev/disk4s2
sudo umount /xxx
sudo rmdir /xxx
So, don't remove that mysterious partition - you will have big problems if you do.