Hi moon
That's basically true, % of the Screen. So, if for example a Horizontal Arrangement is set directly on the screen (It's parent), It's dimensions are relative to the Screen. If you put, say, two buttons in that Horizontal Arrangement, their size is in relation to Screen %, but note that the 'Fill Parent' option is in relation to their parent, the HorzArr.
Tip: Set the Screen Sizing to "responsive";
Tip: Set the Screen "AlignHorizontal" to be Center and "AlignVertical" to Top;
Tip: Use empty Labels as Spacers between other components.
So in the HorzArr example, the HorzArr would typically be set to 98% wide, so the buttons will be away from the very edge of the screen. The height of the HorzArr would be determined by you, dependent on surrounding components, but let's say it's the top-most arrangement on Screen. Set it's "AlignHorizontal" to Center and "AlignVertical" to Center. Set the Height to 12%. Now set the Buttons to 45% width, 10% height and in between them place a (no text, no margins) label, Fill Parent width, Fill Parent height. You now have a relatively ergonomic button layout across many screen resolutions.