It sounds like an "anti-squeal" compound that would be added to the back-side of the pad. It would help to quell some vibrations that can create a squealing noise, as well as keeping the pad more glued to the piston so that it gets withdrawn when not being applied. There is, I believe, also a nylon washer that normally is between the piston and the pad, serving to dampen some vibration.
I've had good results in using a bit of high-temp silicone sealing compound (just a dab) on the backs of both inner and outer pads. The one on the piston side also needs to be free to slide in its housing (the cavity of the caliper that holds it), so a bit of anti-seize on its edges helps to keep it free and moving. None of these compounds needs to be applied in very great quantity - you don't want an excess that might run out onto the braking surfaces when hot.