Consider the simple example from MTW that I think I mentioned earlier in this thread. (Or maybe it was in another of the recent LIGO threads, there have been several.) You have two masses connected by a spring, with the spring unstressed and the masses at rest relative to each other, oriented transverse to a passing GW. The GW will induce oscillations of the masses; i.e., energy will be transferred from the GW to stored energy in the oscillations (i.e., the total energy of the spring + masses is larger when the masses are oscillating than when the system is at rest in equilibrium).
Of course a large object like the Earth is more complicated than two masses on a spring, but the general principle is the same: any time GWs pass through a material where you have atoms (or particles or whatever) with an interaction between them that provides a restoring force if the atoms are moved from their equilibrium positions, the GWs will transfer energy to the material by inducing oscillations of the atoms. From a macroscopic viewpoint, it will look like the object has heated up.