Hey Sottopop,
No worries at all! Sorry if it wasn't clear to you, I'll think of how to make it more clear in a next update.
How I use it is to fill in the final standings of the season before the season you are currently playing. This is to have a reference of what the team modifiers are of the teams you are playing at, based on how strong they historically were.
So let's say you are playing in the 06/07 season, you take the standings of the 05/06 season and write them down there, starting at a bottom 6 team. As for your second question, these are then indeed the team modifiers used for the opp. team mod. during matches.
Then, at the end of the season you are playing (in this case 06/07) you write over (or on another copy) what the actual final standings were of that season (in this case 06/07) and where you ended up, and you repeat for next season.
If you would like to see an example you can read me actual play here: https://tijsvanlieshout.substack.com/p/total-football-actual-play (I'll also include it on this page).
Best regards,
Tijs