Note that $v_0(t) = \max(v_s(t)-v_D,0)$.
In the above case, the signal $v_s$ is a $T$-periodic $\sin $ wave, you want to compute ${1 \over T} \int_0^T v_0(t) dt$.
Since $v_s$ is $T$-periodic, it follows
that $v_0$ is too, we can shift the time origin to suit the computation.
Take $v_s(t) = V_s \sin (2 \pi {t \over T})$, note that if $V_s \le V_D$, then $v_0 = 0$, so we will assume that $V_S > V_D$.
Let $t^*$ be the smallest positive time such that
$v_s(t^*) = V_D$, that is
$t^* = {T \over 2 \pi } \arcsin {V_D \over V_s}$.
Then
\begin{eqnarray}
{1 \over T} \int_0^T v_0(t) dt &=& {1 \over T} \int_0^{T\over 2}
v_0(t) dt \\
&=& {2 \over T} \int_0^{T \over 4} v_0(t) dt \\
&=& {2 \over T} \int_{t^*}^{T \over 4} v_0(t) dt \\
&=& {2 \over T} \int_{t^*}^{T \over 4} (v_s(t)-V_D) dt \\
&=& {2 \over T} \int_{t^*}^{T \over 4} (V_s \sin (2 \pi {t \over T})-V_D) dt \\
&=& {2 \over T} \left [ -{T \over 2 \pi} V_s \cos (2 \pi {t \over T})-V_D t \right ]_{t^*}^{T \over 4} \\
&=& {1 \over \pi} V_S \cos (2 \pi {t^* \over T}) - {1 \over 2} V_D + 2 V_D {t^* \over T} \\
&=& {1 \over \pi} V_S \sqrt{1 - ({V_D \over V_S})^2 } - {1 \over 2} V_D + {1 \over \pi} V_D \arcsin {V_D \over V_s} \\
&=& {1 \over \pi} V_S \left[ \sqrt{1 - ({V_D \over V_S})^2 } + {V_D \over V_S}\arcsin {V_D \over V_s}\right ] - {1 \over 2} V_D
\end{eqnarray}
If we expand this expression in a Taylor series in terms of $V_D$, then
the first two terms are ${1 \over \pi} V_S - {1 \over 2} V_D$.
Note, from a less accurate and less computationally intensive perspective, one could approximate the output as
$v_0(t) = V_s \sin (2 \pi {t \over T}) -V_D$ for the first half cycle and $v_0(t) = 0$ for the second. This will yield the
expression ${1 \over \pi} V_S - {1 \over 2} V_D$.