This shows the x,y point of a shadow or beam for a given height. Usually the point is either the tip of a sundial gnonmon, or an obstruction with a hole to allow a small beam of light to shine on a sundial (often called a nodus). This is primarily used to mark the lines of the equinoxes, solstices, and possibly dates on a sundial. Hour lines can be added using the usual equations.
Generally the equation is used by setting a particular declination value for the Sun (e.g. 23.4), then looping through all X values for however wide the sundial is to produce a list of x,y points.
The Gnomon Height can be in any units (feet, meters, AU), the resulting x,y values will be in the same units.