The device's template organizes and categorizes the incoming data so that it can be logged properly.
If you've already logged data from the QT Py ESP32-S2, then the template will be auto-filled with the data that you sent to Microsoft Azure which was previously categorized as unmodeled data.
You can also add the data types that you want to collect by clicking Add capability. The display name is how the data will be categorized on Azure. The name has to match the string in the JSON message that is sent from the CircuitPython code. Capability type needs to match the type of data that is going to be received. If you are receiving sensor data, then you will select Telemetry.
Make sure to click Save when you're done editing your template.