It means just that: it resets the skill from 100 to 15, refunding all the perks points you invested into it. Therefore, you can level up one-handed again, and continue leveling your character without having to switch to a different play-style due to maxed skills.
Note that is you reset your primary combat skill the game will be pretty hard

If you reset an crafting skill or an magic skill who is easy to level up it will have the same effect.