Embedded TDD tests the logic that sits on top of your hardware and could reveal bad logic, with no hardware to muddy the diagnosis.
Taken literally, embedded test is just that: test capabilities that exist wholly embedded within a system. Power-on self-test is an example as is a built-in performance-monitoring feature programmed ...
One of the key benefits of the C language, which is the reason it is so popular for embedded applications, is that it is a high-level, structured programming language, but has low-level capabilities.