Oh, right, this is the Kindle Keyboard, right?
I don't really know how it works, but I am guessing that it will show the chapter mark at each location marked in the Active Table of Contents. calibre should automatically generate a ToC entry for each <h2> tag -- if not, you can right-click on an entry in the Calibre Library and select Edit ToC. You can add new entries by hand or generated through calibre's parsers.
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