This music was designed to function as background material. Its purpose was to establish a court ambiance in Jabba's palace. It is intended to be diegetic music (a sound whose source is visible on the screen). Despite the name of the track, this sounds more like classical (à la Mozart) than baroque music.
Jabba's Baroque Recital consisted of an elaborate organ-like piece with harpsichord, complete with alberti bass motion. It was presented in 3/4 time, much like a waltz, and is in A-B-A-C-A(ornamented) form.