Yes, it's for paper. Not a woodworking tool. The marks would be for lining up the edges of the paper to get standard spacings for different sizes of paper and punching patterns. 2H would be two holes - presumably on European sizes, and US2H would be on the different size paper used in USA.
A bit slow to use, but flexible enough for all different sorts of sizes and spacings.
This brings back memories! We used to use one of these punches when we were producing bills of quantities for building projects. You'd have up to 200 pages of printed text and cardboard covers which could be drilled together and a treasury tag used to held the lot together. The punch used to get quite hot and I can remember halfway through a batch of a dozen or so bills the thing got so hot the thread welded together. Luckily we had a spare punch so learned the lesson to let the thing cool down after each use.