Hi Kelli Panepinto,
The contact option with other users on your profile, is in regards to privacy. Users are able to set certain privacy settings to only "Contacts". Adding, and becoming contacts will give you the necessary permissions to view these profile fields of the user.
User A sets certain profile information to only Contacts. User B sends a contact request, and User A accepts. User B will now be able to see those profile information of User A. Like address, department, who they report to, any profile field etc. Documentation can be found on this here: Contacts - Userbar Menu.
The wording of this caution notice does bring the meaning into question, so I can understand any confusion on this. I have created a feature request to our product team to look into the wording of that warning. This is referenced by PROD-I-1204.
Please let me know if you have any further questions. Thanks, Brad