Ya, you have to put the key into the ignition, set it to on, so when you push the button it will start. Otherwise in off without the key it will just be a button that does nothing. Likely the Previous Owner installed it and just cut the starter wire and hooked it to the switch, so if you roll the key all the way to start it won't get anywhere, you have to push the button & use the key.

My take on what he said anyways.