10 most extreme places on Earth. The term olive skin tone refers to a darker pigment of Caucasian skin. It is also known as a warm or tan complexion. Inhabitants of numerous countries are known to have this warm skin tone, which is produced when a somewhat average amount of melanin exists within the skin.This lighter brown complexion exists between pale skin and dark skin. Olive coloring is technically a yellow pigment.eople with olive skin tone are typically from Mediterranean, Asian, or South American regions. Of course, people with warm skin tones are found all over the world, as are people with lighter or darker skin tones.