You somewhat got that right but they do not represent the school like when teams give them to players they do not represent the school they almost represent the players for doing great things
They signify achievements. Schools have different reasons for giving these out. They can be for academic, excellent plays, wins, or even having a good practice.
In some schools like Ohio state the helmet stickers show that that player did something good. Like if they have a big hit. Or have a good pass. Or little things like hustleing in practice.
You somewhat got that right but they do not represent the school like when teams give them to players they do not represent the school they almost represent the players for doing great things