Armedbear: I'm not sure what you don't understand about it. It replaces the rear sight aperture. I'm not sure how big the 'long-range' aperture is on the standard A2 sight, but .040 will be smaller.
SSN Vet: Are you just using this for general use? If that's the case, I don't see why this wouldn't work for you. You'll still have the same MOA per click adjustments with the old sight, but at least you get a finer aperture. If you want to shoot High Power Service Rifle, you may want to invest in a full on NM rear sight so you have the option of interchangeable apertures (can pick sizes) and get finer adjustments (either 1/4 or 1/2 MOA per click). Going rate is about $130 give or take on the make (White Oak, Compass Lake, Northern Comp, etc).