This only applies to timing lights that have an advance feature. The straight up timing light is just going to flash when the ignition sparks.
The timing lights with an advance feature have to calculate the time in between actual ignition pulses to spark. So therefore it needs to know how often in revolutions the ignition sparks. On the 4 stroke setting is expects every 720 deg on 2 stroke it expects 360 deg. If it doesn't have a setting then it's going to be on 720 deg, then to do a two stroke or wasted spark ignition you have to divide the number on the dial by two.
Here is my timing light, note the two sets of numbers on the dial.