Yes, that’s exactly what that means.
Essentially for each spindle rotation, the carriage will advance by the rate at which the selectors are set.
E8 being .0032” per revolution.
One thing to note is that you have separate feed mechanisms for screw cutting and power feeding. The top one is for threading and should only be used for that purpose to save wear and tear on the half nuts and to a lesser extent on the lead screw.
The bottom one is for power feeding.
I believe that the lever directly above the threading chart controls which feed mechanism you are using.