Body painting is a form of expression used by people who like to be naked to communicate feelings and ideas about the human body by using the body itself as the canvas. Such ideas may sometimes be of a sexual nature, but that is only a small part of the possible range of thoughts that can be expressed in this way.
It shouldn't be very surprising that people who like to be naked also like to paint bodies or have their own painted. It is a fairly common pastime at nudist/naturist gatherings and events, and other festive occasions where naked people are found.
A naked body makes a pretty good canvas for creative expression. In fact, the expanded possibilities for self expression that are possible when one doesn't wear clothes form one of the chief attractions of being naked for some people.
What people who are interested in the body as an expressive medium have in common with those who just like to be naked is a certain attitude towards the body. An attitude that is more detached and objective than "normal". An attitude that accepts, without flinching, the body for what it is, and then uses it to realize new concepts of "corpo-reality".
Is body painting an erotic thing? Clearly, it can be, just as certain choices in clothing can be erotic. However, it need not be any more erotic than other, non-erotic forms of appreciation of the body for its own sake.