[guided]We now prove the key contrapositive direction: if no finite set of ground instances contradicts itself, then the whole universal Skolem sentence has a model.
Let $\mathcal{A}$ be the set of all ground atomic $L'$-formulas. Since $B$ is quantifier-free, every ground instance $B(t_1,\dots,t_n)$ can be viewed as a propositional formula whose propositional variables are the ground atoms appearing in it. Define
\begin{align*}
\Gamma := \{B(t_1,\dots,t_n) : (t_1,\dots,t_n) \in H_{L'}^n\}.
\end{align*}
The hypothesis says that every finite subset of $\Gamma$ is satisfiable. Therefore, by the compactness theorem for propositional logic (citing a result not yet in the wiki: Propositional Compactness Theorem), there is a truth assignment
\begin{align*}
v: \mathcal{A} \to \{\mathrm{true},\mathrm{false}\}
\end{align*}
such that every formula in $\Gamma$ evaluates to true under $v$.
The next task is to turn this propositional truth assignment into a first-order structure. The natural universe is the Herbrand universe itself:
\begin{align*}
|\mathcal{M}_v| := H_{L'}.
\end{align*}
This set is nonempty because, by hypothesis, we added a fresh constant symbol if $L'$ had no closed term. Constants and function symbols are interpreted syntactically. Thus a constant symbol $c$ denotes the closed term $c$, and a $k$-ary function symbol $f$ is interpreted by the map
\begin{align*}
f^{\mathcal{M}_v}: H_{L'}^k &\to H_{L'} \\
(s_1,\dots,s_k) &\mapsto f(s_1,\dots,s_k).
\end{align*}
Relations are interpreted using the truth assignment. For a $k$-ary relation symbol $R$, put
\begin{align*}
R^{\mathcal{M}_v} := \{(s_1,\dots,s_k) \in H_{L'}^k : v(R(s_1,\dots,s_k)) = \mathrm{true}\}.
\end{align*}
This construction is arranged so that syntax and semantics agree on ground formulas. First, an induction on ground terms shows that every ground term $t \in H_{L'}$ denotes itself in $\mathcal{M}_v$. The base case is a constant symbol, which was interpreted as itself. The induction step follows from the definition of $f^{\mathcal{M}_v}$: if $s_1,\dots,s_k$ denote themselves, then $f(s_1,\dots,s_k)$ also denotes itself.
Second, an induction on quantifier-free ground formulas shows that, for every quantifier-free ground formula $C$,
\begin{align*}
\mathcal{M}_v \models C
\iff
v(C) = \mathrm{true}.
\end{align*}
For atomic formulas this is exactly the definition of the relation interpretations. The Boolean connectives are handled by the ordinary truth tables for $\neg$, $\land$, $\lor$, and any other propositional connectives used in $B$.
Since $v$ satisfies every formula in $\Gamma$, it follows that
\begin{align*}
\mathcal{M}_v \models B(t_1,\dots,t_n)
\end{align*}
for every tuple of ground terms $(t_1,\dots,t_n) \in H_{L'}^n$. But every element of the universe $|\mathcal{M}_v|$ is itself a ground term. Therefore, if $a_1,\dots,a_n \in |\mathcal{M}_v|$ are arbitrary, then they are closed terms in $H_{L'}$, and the corresponding ground instance gives
\begin{align*}
\mathcal{M}_v \models B(a_1,\dots,a_n).
\end{align*}
This is precisely the satisfaction condition for the universal sentence
\begin{align*}
\mathcal{M}_v \models \forall y_1 \cdots \forall y_n\, B(y_1,\dots,y_n).
\end{align*}
Thus $U$ is satisfiable.[/guided]