At this point you can press the record button. The onboard LED will light up which means its recording. Move the arm around any way you like then press the record button again to stop recording. The arm will straighten up again then immediately replay the motion it learned. When the replay is complete the arm will position itself straight up again.
You can press the replay button to replay the last learned routine, or teach the arm another motion sequence with the record button.
Did everything work correctly? Congrats on creating your own Baxter-like trainable robotic arm!