Great point, I should be more explicit in the article. On Lemmy, it would look like a couple of things:
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today, another instance's request to federate is accepted unless it's explicitly blocked. This means that bad actors can get away with stuff until they're discovered and blocked (although it makes it easier for good actors to federate). Consent-based federation turns that around: a request to federate isn't accepted unless it's approved. One way an instance admin could decide whether or not to approve a request is to look at FediSeer to see what other instances are saying about the requestor.
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at the individual level, it would mean that people would start out by participating in local communities (and maybe even just seeing posts from their instance, not sure about that), and could then choose to have their posts federated out