I got this assertion from the book "Category Theory for Programmer", but I think it is just a set-theory interpretation. So, the idea is the following, consider a set $m$ with $\times$ as the Cartesian product and $+$ as the disjoint union. Also, take $1:=\{a\}$ as a singleton set. Now, the book claims that a function $f\colon m \times m + 1 \to m$ is the same as defining two functions, one $\mu\colon m \times m \to m$ and another $\eta\colon 1 \to m$.
This might seem silly, but I haven't been able to figure out why this is the case... From what I understand: $$ m \times m + 1 := \{(x, a) \mid x \in m, a \in 1 \} $$ Hence, a function $f\colon m\times m +1 \to m$ would be pretty much the same as a function from $m \times m \to m$... What am I missing?
The set $m \times m + 1$ defined in this manner is not the set in your question, but rather the set $$m \times m + 1 = \{\,(x,y) \mid x, y\in m\,\} \sqcup \{a\}\text{ .}$$
What the authors are noting is that the restriction of $f$ to $m \times m$ is $f\rvert_{m \times m} = \mu$, and the restriction of $f$ to $1$ is $f\rvert_1 = \eta$, so that $f = \mu \sqcup \eta$.