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What's the basic usage of this tool? I bought it and I'm a little confused. Is each project for a single dialogue sequence? Or is a project suppose to contain all dialogue sequences for an entire game project?

The idea was to make a tool to create manageable, separate dialogue files for dialogue heavy games which require non-linear storytelling. Those files are meant to be connected by an external software, like a game engine or a framework.

Ok so If I'm understanding you correctly, if I'm making an RPG and I have 2 conversations, one between the player and a villager, then one between the player and the final boss, I would make 2 separate dialogue designer projects?

Yes, you would create two separate files. Think of them like they're image files that you edit separately of each other, and then put them together in the game engine.