What does the iCloud download button mean on iTunes?

I just bought the Hp Envy laptop and I want to transfer everything from my iPhone onto my laptop. I already got my pictures on there. Anyway, I got my music to show up in my iTunes library but it has the cloud with the arrow facing down between the song title and artist name. I was just wondering that once I hit the iCloud download button, am I officially putting the song onto my laptop? I'm just not sure if hitting the download button will charge my account as if I'm re buying the songs. Also, my playlists that I've made on my phone won't show up in my iTunes library either. I'm sorry if this isn't clear enough, this is my best description of the dilemma I'm currently in.

ICloud is a back-up. So if you accidently lose your device or gets broken, stolen, etc, you log into your Apple ID and it's all stored there.

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