Baking bread in a closed container is a common practice. The container can be ceramic, like a clay cloche:
or a Dutch oven or similar metal pot, or any other oven-safe material.
One of the nice effects is that steam is trapped in the vessel, and that contributes greatly to the crust, similar to the injection of steam into commercial ovens.
And when preheated, it more closely simulates hearth baking, and the bottom of the loaf isn't so likely to be overdone. Very nice for rustic type breads where you like robust crumb and lots of crust.