Tokico adjustable's

I know this is going to sound stupied but please bare with me.
I wanted to know if anybody with these shock can tell me about the dampnig levels (1-5) I know that 5 would be the most stiff but please expain.

Think of a VERY bump road eith blown shocks. That's 5. Now than of the smoothest road with good shocks. That's 1 Pretty simple there. It changes how fast the and how much pressure the valving on the inside of the shock moves and reacts.

I have these with stage II H&R's and run them at 3. They ride nice and firm but have movement.