How to use the Timestamp?

can anyone help me understand how to use the timestamp? I read the pae but I'm a bit confused with the timezone thing

It says

  • A timezone: A two, three or four letter abbreviation, indicating local time, taking into account daylight savings time. If no standard name is used, there is an offset off UTC. Thus far, the following have been used:

but I can't really follow this

—The preceding unsigned comment added by ‎Mr.DarkPhantom (talkcontribs)
Go to any page that uses it and see how it's formatted. --Tupka217 07:43, April 29, 2014 (UTC)
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