Yes that is the hammer setting on your drill. The next setting is for screwing things in with no clutch release (it will keep rotating while the button is depressed), and it appears you have a series of numbers next which are the clutch settings. These will apply different amounts of screwing pressure before the clutch disengages. Good for when you don't want to over tighten it strip screws.
Please do not use the drill setting for screws, you're gonna strip the head and regret it. Even with years of experience, being too lazy to turn the dial has burned me countless times
Eh, drilling small holes in concrete is fine. If I need to throw a quick tapcon or something in a slab I'll just use my 1/2" chuck cordless hammer drill. You're absolutely right about larger holes though. What a pain. And don't talk to me about hitting rebar lol
20 cm is thick if it’s solid core, but if you have a sharp masonry bit and let it do the work with light pressure, one hole should definitely be achievable— depending on diameter (or hitting re-bar)