See Reduct of a structure $\mathcal M$ : it is obtained omitting some of the operations and relations of that structure. The domain is not affected by the "reduction".
For the question :
> that any formula that is satisfiable by a reduct of a model is satisfiable by the model it is a reduct of,
we have to consider that for an atomic $P(x)$ to be satisfiable in the "reduced" structure $\mathcal M^R$ means that there is an element $a$ in the "common" domain of the two structures such that $\mathcal M^R \vDash P(x)[a]$; but then also : $\mathcal M \vDash P(x)[a]$.
* * *
This is the _basis_ case for the induction; the cases for the connectives are strightforward ...
For the $\exists$ quantifier, the argument is the same : if there is some $a \in |\mathcal M^R|$ such that $\mathcal M^R \vDash \varphi(x)[a]$, then obviously $\mathcal M \vDash \varphi(x)[a]$, because the two structures have the same domain.