This button is probably located inside a widget (dataview, templategrid, listview) that has a datasource object. When in Studio Pro, you select the button, go to the Properties-pane of that button, then you can change the property ‘Events’ to ‘On click’: ‘call a microflow’. Now a popup-window shows up, so you can select a microflow. If you click the ‘New’ button and give it a name, then a new microflow will get created. That microflow will automatically have a parameter of the same entity as the datasource object.
That’s what your sentence means.