A DummyIDP app lets you emulate your customer's identity provider.Docs
These are SAML settings that identity providers (DummyIDP, in this case) assign. Normally, they'll come from your customer's Okta/Google/Microsoft/etc instead. You need to put these into your application's SAML settings.
These are SAML settings assigned by the service provider ("SP"), i.e. your application. You need to copy those settings from your application into here.
Settings for directory syncing over SCIM. Optional.
You can simulate SAML logins from this list of users. They'll be synced over SCIM if you've configured it.