Yes, it is a computer card in its own right - with a Z80 CPU and 64K of RAM.
The Apple is used for its disks, video screen, keyboard etc. (so basically the peripherals).
You load a program into the Apple that (effectively) turns it into a slave peripheral to the Z80 CPU running on the option card.
Most of the software (in the business world that is) was available for the CP/M operating system. As a result, it generally only ran on 8080, 8085, Z80 computers. If people used the Apple II for business, then adding a co-processor card gave them access to a much larger variety of business software than was available for the Apple.
Dave