looks like thermal switch,things get a bit warm it opens,when they cool down it closes
And is that temperature selected because if the heating element got hotter than that, it could be damaged?
It depends. There are three different types: auto-reset, manual-reset and non-resettable.
If it's auto-reset, then it might be used as a thermostat, in which case, if there's a risk of fire due to it overheating, there should also be a manual or non-resettable thermal fuse, which might be a different type.
It might be there in addition to a thermostat, in which case, it could any of the three types.