No, it means the HD 4000 is using 1700MB of the computer's system RAM as VRAM (shared memory) since it has no dedicated VRAM like add-on graphics cards do.
The amount of system RAM assigned to the Intel iGPU is set in the BIOS, sometimes user-adjustable, sometimes fixed.
If user-adjustable you have to consider how much RAM is installed and what impact it will have on Windows & apps performance if you share too much.