In the landing training mission, the "instructor" is using the HSI to determine when you are hitting the final approach fix. This is why it's important to set the HSI to the runway heading (even if it's off by a few degrees as you'll find reported in numerous threads on the forum). When set to runway heading, the CDI needle on the HSI will indicate when you are approaching the course for final and in the training mission the instructor will prompt you when this happens.
As as additional aid, you can use the TAD to set a markpoint at the bearing and range provided by ATC using the TAD cursor with the hook function (left side of the display) set to OWN-CURS.
"for xx" is indeed the range. Altitude is not specified and the directions are limited to "pattern altitude." This will be about 2,000-3,000 ft., depending on the airport.