They might be quite surprised. RWBY characters are used to their own universe, and Tony Baker fanfiction is likely something very different. They could find the concepts and stories in it either really interesting or completely strange.
The RWBY characters' reactions would depend on the nature of the Tony Baker fanfiction. If it's a comical fanfiction, some characters like Nora might find it hilarious and be laughing throughout. Ren, being more reserved, might just have a small smile. If it has a lot of emotional depth, characters like Jaune might be able to relate to the characters in the fanfiction on a personal level. And Pyrrha would probably analyze the character development in the fanfiction and compare it to her own experiences of growth.
Well, Ruby might be excited. She has an open - minded and adventurous spirit. So she could be eager to explore the new ideas presented in the Tony Baker fanfiction. Weiss, on the other hand, might be a bit more critical at first. She's used to a certain level of sophistication in stories, and if the fanfiction doesn't meet her standards, she'll probably voice her concerns. Blake could see parallels between the fanfiction and some of the social or moral issues in her own world, and Yang would probably be more interested in the action - packed parts if there are any.