If I have a shapefile with attributes and values that I need. What happens when I import it into a GDB with domains for that attribute? Say in my shapefile I have a feature with attribute 'TYPE' with a value of 'HOME' and import it into the GDB the value is 'HOUSE', does it convert my value 'HOME' to 'HOUSE' to maintain consistency?
No it does not. Shapefiles do not support domains. When you import this into a GDB, the process does not automatically assign domains, even if the field names are the same. You will need to manually assign a domain to the field (Either an existing domain or a new domain) To conform to your existing domain you will need to modify the values in the feature class manually as well
The domains transfer over as well into your GDB, you may need to re-assign them
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I suggest you to review the tutorial about that.
Also, ESRI has their ArcGIS help online. To read more about them go here: http://desktop.arcgis.com/en/arcmap/10.3/main/manage-data/what-is-geodata.htm
I found another one and this looks good http://doc.arcgis.com/en/collector/windows/create-maps/prepare-data-desktop.htm