Does anyone recognize this material?
It is on the wall in the mudroom and laundry room.
Looks like some kind of small-checked "strips" or similar.

Why do you think this material is here? Original purpose?

Should the material be removed before I have it painted or otherwise renovate the walls?

Thanks! :)

Close-up of a textured, grid-patterned wall material in a utility room, possibly old wallpaper, showing signs of peeling and wear.

Close-up of a wall with peeling, grid-like material strips, possibly old adhesive or backing, revealing a partially exposed white surface underneath.
 
Looks like fiberglass strips, which are placed over the panel joints to prevent them from cracking.
Let them stay if they're fixed. Spackle over them and sand down so it becomes smooth and nice.
 
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Stina71
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It looks like joint strips that are placed over joints on boards to prevent movement between them.
If you replace the boards with rigid gypsum that is jointed over studs, you can often skip these, but not always.
If you remove these and wallpaper over, the wallpaper will crack here during the next autumn storm.
 
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Stina71
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