Create database connectionStrings

Summarizing a little what I have, the app creates a sql database, if it is already created, it deletes it and recreates it.
I would like to understand the part of the code where it does this, which if I'm not mistaken is this.

public class ApplicationDbContext : IdentityDbContext<ApplicationUser>
    {
        public ApplicationDbContext()
            : base("DefaultConnection", throwIfV1Schema: false)
        {
            Database.SetInitializer(new IdentityDropCreateInitializer());
        }

        public static ApplicationDbContext Create()
        {
            return new ApplicationDbContext();
        }
    }

Could you help me understand this part of code?
asp.net