Your belief about the meaning is basically correct, but it's not everything that would match.
Unlike your usual regex libraries, when we're dealing with language theory like this, a regular expression must match the entire string. So, ε (empty string) is in the language, 10 is in the language, 1010 is in the language, and so on - everything that consists entirely of the string "10" repeated 0 or more times.
01, however, is not in the language; the string does not consist of the string "10" repeated 0 or more times. 1 is also not in the language, you're missing the final 0.
I don't know if you've covered this part yet, but if you convert that regex to an NFA (or a DFA, non-determinism isn't required for this one) you'd basically get this (slightly simplified, if I remember my conversion algorithm correctly, but it's a pretty trivial change from the algorithm to this):
1
┌─┐
│ ↓
→a b
↑ │
└─┘
0
where a
is an accepting state, and b
is not.
Does this help you see why it doesn't match everything?