The option dom0_mem is used to set the initial and maximum memory size of the Domain-0, which is the privileged domain that starts first and manages the unprivileged domains (DomU) in Xen. The option dom0_mem must be specified in the bootloader configuration, such as GRUB or GRUB2, when Xen is booted. This ensures that the Domain-0 kernel can allocate memory for storing memory metadata and network related parameters based on the boot time amount of memory. If the option dom0_mem is not specified in the bootloader configuration, the Domain-0 will use all the available memory on the host system by default, which may cause performance and security issues. References:
Managing Xen Dom0′s CPU and Memory
Xen Project Best Practices
Dom0 Memory — Where It Has Not Gone
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