There are three Norths
True North - The place at the top of the world, (which we do not use in map reading)
Magnetic North - Where your compass needle points
Grid North - The grid lines on your map
The magnetic declination adjustment is to get your Grid North in alignment with Magnetic North, so the needle of your compass points the same as the lines on your map.
The problem is Magnetic North shifts a certain amount each year, so you need to know what your your declination is for that year.
Topo maps should show you the declination and the shift per year.
Look at the date of the map and make your calculation, or use the link KuRUpTD posted.
Once you know the declination, you can change your sighted bearing to the map, or Map to bearing. (Terrain to Map, or Map to Terrain)
The little steel tool turns the face of the compass (Magnetic North) to align the compass point to the square of the compass (Grid North), and you do not need to make the calculation each time