Explanation
Common Data Model is built upon a rich and extensible metadata definition system that enables you to describe and share your own semantically enhanced data types and structured tags, capturing valuable business insight which can be integrated and enriched with heterogeneous data to deliver actionable intelligence.
Common Data Model can be used by various applications and services including Microsoft Dataverse, Dynamics 365, Microsoft Power Platform, and Azure ensuring that all of your services can access the same data.
Note: A wide variety of applications and services can easily access data in a data lake, however, each consumer must understand the format and meaning of the data before it can provide value. The Common Data Model simplifies this process by providing a metadata system that describes the data and standard entities to which producers can map.
Reference:
https://docs.microsoft.com/en-us/common-data-model/use