It creates anonymous class object with one field called id. Look on msdn for details. Once you create object it cannot be extended.
This what this class looks like when open with .net Reflector
[CompilerGenerated, DebuggerDisplay(@"\{ id = {id} }", Type="<Anonymous Type>")]
internal sealed class <>f__AnonymousType0<<id>j__TPar>
{
// Fields
[DebuggerBrowsable(DebuggerBrowsableState.Never)]
private readonly <id>j__TPar <id>i__Field;
// Methods
[DebuggerHidden]
public <>f__AnonymousType0(<id>j__TPar id);
[DebuggerHidden]
public override bool Equals(object value);
[DebuggerHidden]
public override int GetHashCode();
[DebuggerHidden]
public override string ToString();
// Properties
public <id>j__TPar id { get; }
}
So its compiled to regular class the basic difference is that it cannot be used outside of method scope.