I tried for a while now to figure out how LaTeX is determining the spacing between two lines but instead of getting clearer I'm more and more confused (and it seems the Internet is mostly confused, too), so let's see if turning it into a question can clarify it!
The naive assumption
First of all my naive understanding of "line height" or what I assumed was the value stored in \baselineskip was the following

Consequently I assumed setting \baselineskip equal to font size should result in lines "touching" each other - no actual empty space between lines (including full ascenders and descenders of the font).
Reality seems to differ
However it became clear to me, that this can't be true. Consider the following:
\documentclass{article}
\begin{document}
\setlength{\parindent}{0pt}
% font size = \baselineskip - should result in lines "touching", shouldn't it?
\fontsize{10pt}{10pt}\selectfont
\textbar The quick brown fox jumps over the lazy dog\\
\textbar The quick brown fox jumps over the lazy dog
\fontsize{20pt}{20pt}\selectfont
\textbar The quick brown fox...\\
\textbar The quick brown fox...
\fontsize{30pt}{30pt}\selectfont
\textbar The quick brown fox...\\
\textbar The quick brown fox...
\end{document}
While my assumption seems to hold for smaller font sizes, the larger the font size the more obvious it becomes this can't be the whole truth!
Set line height in multiples of font size?
Similar confusion is also apparent for people trying to set the line spacing to a specific multiple of the font size.
Using \renewcommand*\baselinestretch{1.5}\selectfont or similar does many things - but not result in what one expects to be a one-and-a-half line spacing!
This even resulted in the creation of the setspace package, which is often recommended to achieve the desired result. Looking at the source reveals however, that the authors were not fully able to understand what LaTeX was doing either:
% GT: Sat 28 Sep 1996: No, I don't know understand the line spacing
% algorithms! If someone (LaTeX team) can enlighten me as to the
% general rule, please do! It would be very pleasant if setspace.sty
% were suited for document font sizes other than 10, 11 and 12 pt.
And in fact the package specifies some hardcoded values for the three font sizes mentioned to achieve consistent line spacing at least for the most commonly used font sizes.
Why care?
Obvious question: Why care so much if whatever TeX does seems to "look good" at least.
In my specific case I want to implement something in TeX that works like the line-height property in CSS/SVG, so I can set the line spacing precisely in multiples of the font size.
So far a solution is elusive to me which kind off bugs me because I always thought this was the stuff TeX was supposed to be superior in, but it turns out in this particular case it's reluctant to comply.
Therfore I hope you can give me the clarity I need to implement what I want and explain what spacings control the actual distance of two font baselines in LaTeX and how \baselineskip plays into this.


\offinterlineskip— but, curiously, not if you compile with luatex rather than pdftex. – Thérèse Jan 13 '18 at 21:40