What kind of signing this is
This places an image of a signature onto the page — it doesn't attach a cryptographic digital certificate the way specialized e-signature platforms do for legally-binding contract signing. For everyday paperwork — signing off on a form, approving an internal document, adding your signature to something you're sending back — a visual signature is exactly what's expected and normal.
For a contract or document that specifically requires a certified digital signature (common in some legal, financial, or government processes), use software built for that purpose instead — this covers the much more common case of "put my signature on this page."
Draw, type, or upload
Drawing gives the most natural-looking result and works with a mouse or a finger on a touchscreen — the closest to actually signing by hand. Typing your name in a script-style font is faster when a natural-looking signature isn't essential, just a clear mark of who signed. Uploading an image is the right choice if you already have a signature saved — a photo of your signature on paper, for instance, or one exported from another app.
Placing and sizing it correctly
Drag the signature box to move it, and drag its corners to resize it — check the actual page content before finalizing so the signature doesn't overlap text or a signature line it should be sitting on top of instead of over. Navigate to the correct page first if the document has more than one; the signature only gets placed on whichever page is selected when you save.