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Could this native app icon be explained more completely?

I understand that:

The horizon line is the pitch and yaw of the drone.

The white triangle is North for a map.

The N, within a circle, is North, relative to the orientation of the controller?

The red drone image is the heading of the drone, but relative to what?

What are the metrics of the dashed concentric circles - the distance from the Home point?

I found it difficult, during a flight, to match the visual observer position of the drone with the information display.

The objective is to be able to use this icon to help relocate the position of the drone in the sky, if visual contact is lost.