Hallo. What brakes & bike have you got at the moment?
I believe the measurement is from the centre of the mounting point to the centre of the brake pad face where it would press against the rim, measured vertically down from the mounting point.
You can see from the picture that there is a degree of adjustment given by the way that the brake pads are fixed to the caliper arms.
FWIW - I had Tiagra brakes on my bike from new and they were kinda alright; but (a) I had trouble getting replacement pads which had the ability to adjust the 'toe-in'; the ones that came with it had a floating pivot built into the one-piece moulded pad, and the only replacements I could get had a fixed mount. It was a nightmare to get them aligned with the rims properly in the line of travel; (b) I discovered on a steep hill in Wales that actually they weren't that great at stopping! For a quid more on the same site they've got 105 calipers which come with brake shoes with removable pads; this means you have many more options for changing them (I managed to get bargain Ultegra calipers in a sale, and have tried different pads without any trouble).