Gradient basically represents the variation in space(in a direction) of any quantity. With color it represents the variation of color intensity in a direction represented by angle. Here are some diagrams to represent this
concept:
Here the figure shows the color variation in horizontal direction(angle is set 0).
XML code:
Here the figure shows the color variation in horizontal direction(angle is set 90).
XML code:
You can also use different color as start, center and end colors. The code you attached contains all these elements.