Text is drawn in a bold sans-serif font in the colour you choose. The size box is relative to the photo, not in pixels: the actual height is the size value multiplied by the image width divided by 1000. The default of 48 therefore gives text about 4.8% of the image width tall, whether the photo is 800 or 6000 pixels wide, so the watermark looks the same on every size.
Logo lets you upload an image, ideally a PNG with a transparent background, and set its width as a percentage of the photo's width (5% to 80%, default 20%). The logo keeps its own proportions.