I don't know anything about your particular controls but the D number should reference a diameter value that you have entered in a register with that address. A register is just a slot in memory, a slot with an address of a D and a 1 in your example.
The other thing to understand about compensation is that it may not work correctly with a Z movement included. Convention says that the tool should be set to depth, and then radius compensation should be called. If you can get away with Z movements included, then I guess you can, but I would avoid doing that when you are just trying to understand what is going on.
Thirdly, radius compensation requires what we call a lead in to the part profile before you begin cutting, and a lead out from the part profile (when cutting is completed). This is because the control needs to see a linear movement before it can assign a left or right handedness to the next commanded movement. That is to say, offset left or offset right is ambiguous when you don't know what direction your face is pointing. So the initial lead in is equivalent to saying "Look in this direction" then the 2nd movement can be figured as right or left of the direction you are now facing.
The lead in movement should be of such a length as to equal the radius of your tool. This is to prevent an accidental gouge of the part profile that you intend to rad comp from. If the tool center is already parked on the part profile before comp is called, its pretty obvious that you've now got a semicircular gouge in the profile, that won't polish out with a bit of elbow grease
So these lead in and lead out moves have to be added as 'extra geometry' if you are working in a cad cam program to write your code. Of course, many cad cam programs make provision for adding these movements when you tell them to.