This position will determine the ratio for two token that you deposit into the Meteora pool. This is different from the borrow ratio.
Borrow Ratio
Determines the asset you borrow out of the lending pool
Deposit Ratio
Determine the asset you deposit into the LP position
Example
Let's continue with the previous example, after you borrow out 1SOL and 150USDC, your position now is 2 SOL and 150 USDC (450 U worth)
After that, if you choose your position ratio to be 50% SOL and 50% USDC, you will deposit 225U USDC and 225U worth SOL (1.5 SOL) into the Meteora pool, which means, 0.5 SOL will be automatically swap to USDC to form this position.