According to Wikipedia:
The conic section with equation $x^2-y^2 = 0$ is degenerate as its equation can be written as $(x-y)(x+y)= 0$, and corresponds to two intersecting lines forming an "X". This degenerate conic occurs as the limit case $a=1, b=0$ in the pencil of hyperbolas of equations $a(x^2-y^2) - b=0$. The limiting case $a=0, b=1$ is an example of a degenerate conic consisting of twice the line at infinity.
If $a=0$, and $b=1$, the equation becomes $1=0$, how is that possible?
If we rewrite the equation we find $y^{2}=x^{2}-\frac{1}{a}$. Now think about what happens if $a$ tends to $0$, clearly $x^{2}$ has to tend to infinity, while every value of $y$ is still possible. So for "$a=0$", i.e. the limit case of these conics we are left with the lines $(\infty,y)$ and $(-\infty,y)$ with $y\in\mathbb{R}$.
I agree it is not written down with a lot of mathematical rigour on the wikipedia page.