Yup! A seed signer doesn't actually store your seeds because there's no secure element. After generating a 12 or 24 word seed and adding a password to it or not, you're responsible for storing your seed yourself. You can use the seed siner for a PSBT via the QR system.
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Signer*
You can also turn any previously generated 12 or 24-word seed into a QR code for easy PSBT access.
So it can create the seed, but you must store and secure it separately.
That makes sense! For each signature, do you just enter the seeds?
Yup. If you need to Interact with your seed in any way you need to enter the seed back into the device. You can either manually type in this seed words yourself or you can load it in via the QR code that you can generate with the seed signer.