When the dial on your rifle scope says "up," it means you're moving the reticle (the crosshairs or aiming point) upward in the scope. However, this does not mean you're moving the crosshairs toward the bullet hole. Instead, you're adjusting the aim to compensate for where the bullet actually hit.
For example:
If your bullet hits low on the target, you would turn the "up" dial to move the point of aim upward, which raises where your next shot will hit, making it closer to your original aiming point.
In other words, you're adjusting the reticle so your aim point matches where the bullets are hitting after the adjustment.