For Rotation vectors:
The x value is the "pitch" of the phone: At 0 it is face up, at -1, 1 it is facing the ground. This rotates around the x-axis in the diagram on the right above.
The y value is the "Yaw" of the phone: Decreasing the yaw rotates counter-clockwise, increasing it rotates clockwise around the y-axis.
The z value is the "Roll" of the phone: Increasing or decreasing the roll rotates the phone around the z-axis.
Each of the coordinates are a value from -1 to 1 because of they are trigonometric functions. The Android Documentation states that they x,y,z values are equal to the last three components of a unit quaternion (cos(θ/2), xsin(θ/2), ysin(θ/2), z*sin(θ/2)). Using quaternions is beyond the scope of my knowledge but here's a tutorial if you would like to learn how they work. http://3dgep.com/understanding-quaternions/
The way I figured out how to understand these values came from playing with the pitch/yaw/roll of the phone in this API for simulating movement on android phones https://code.google.com/p/openintents/wiki/SensorSimulator
For example a phone with a Yaw of 0, a pitch of 0, and a Roll of zero is lying flat, with the screen upwards (towards the sky) with the top of the phone pointed north (Again play with the SensorSimulator and you'll be better able to visualize this, it's really hard to explain through words)
If you want to have an easy way to calculate the reference to the earths coordinate system call getRotationMatrix() on your SensorManager:
Android doc
Here is a demo of a program using the rotation vectors: https://android.googlesource.com/platform/development/+/master/samples/ApiDemos/src/com/example/android/apis/os/RotationVectorDemo.java