A backdrop is a large sheet or curtain that is hung at the back of a stage or set to create a background. Metaphorically, a backdrop can also refer to the setting [the place, time, and circumstances where something happens] that provides context for an event or situation.
For example, in a play, the backdrop might show a forest or a city skyline [the outline of buildings and structures in a city], setting the scene for the actors and adding depth to the performance. In a broader sense, the economic situation can serve as the backdrop for a company’s financial decisions.
Very Simple Definition:
A backdrop is a big piece of cloth that goes at the back of the stage in a play or show.
For example, in a play, the backdrop could be a picture of a forest or a city.
In real life, the backdrop can mean the situation that’s happening around something, similar to how in a play the backdrop shows the situation that characters are in. For example, if someone is giving a speech about the importance of education, the backdrop could be the current state of the education system in the country, providing context for their words and ideas.