Not exactly. It has nothing to do with calibration. The button press and light flashes are there to allow you to ensure the magnets are positioned sufficiently close to trigger the sensors. The lights don't flash in normal use to conserve battery power. You don't have to press the button to pair it with your Edge. A magnet passing the cadence or wheel sensor wakes the unit up at which point it can be paired without ever pressing the button. It will go back to sleep after a period of inactivity to conserve battery power.

The sensor only broadcasts. It does not receive any signals from the Edge.