The sky dome you are describing is specifying spherical coordinates, then converting them to rectangular coordinates. Its a little easier to visualize in 2D.
2D polar coordinates (The 2D version of spherical coordinates) consist of a pair, a radius (r) and an angle (theta). You can describe the location of any point by distance from the origin (r) and the angle (theta) it forms with the x axis.
To convert from polar to rectangular (x,y) x = r*cos(theta), y=r*sin(theta). The useful thing about polar coordinates is that its very easy to describe a circle. You just hold the radius (r) constant, and vary theta.
With sperical coordinates, you still have a radius (r), an angle (theta), and now an angle (phi) from the perpendicular axis. You can describe a sphere by keeping r constant, and varying the angles theta and phi. You then convert back to rectangular as follows:
x=r*sin(phi)*cos(theta)
y=r*cos(phi)*sin(theta)
z=r*cos(theta)
Conceptually its:
for theta=0 to 2*pi for phi=0 to 2*pi createvertex(r, theta, phi)
Anyways, i don''t know if that helps or if its confusing. Here''s a link that might help visualize things:
http://sosnick.uchicago.edu/spherical_cylindrical_rectangular.html