yep
It's quite different from voltage control. It's something more akin to 'wattage control'. Your card has some amount of 'juice' it's expected to run at, at a maximum. Let's say you have 2 x 6 -pin connectors on your card + the power from the motherboard. The max 'rated' wattage draw from each of these three connections is 75W, and you have 3, so the absolute max wattage draw that AMD is going to 'allow' your card to draw is 225W.
However, they likely 'expect' a card with this connector configuration to draw something like 175W. Lets call that wattage amount the card's TDP, for the sake of simplicity.
So, when your power limit is set at 100%, this means your card is 'limited' to it's TDP, and if whatEVER you're doing with the card is causes it to exceed a draw of 175W, the driver will start to downclock and downvolt the card in order to get it run within the expected power envelope designated by the power target slider and the TDP.
Raising the Power Target up simply allows for your card to draw more juice through it's three connectors without resorting to downclocking/volting. In the scenario I described, it's likely that whatever % value you have available over 100% is going to reflect the difference between TDP and 'max safe wattage draw', based on the connectors running to your card. If your card indeed had a TDP value of 175, it's likely that max power target would be 100% + (225-175)/175 * 100, or 128% maximum power target.
So, when you OC, and especially when you OV your card, you are obviously likely to increase the power draw of the card (depending of course on the intensity of the test, whether you have v-sync on, these types of things), and if you don't raise the power limit, it might well cause the card to downclock/downvolt when you don't want it to.