You are giving us just a small peek of the procedure from which it is impossible to answer all of your questions.
Let me step back and ask you, if you have a voltmeter, and you want it to read "10" as a full scale value for the maximum voltage from a sensor that produces more than 10V (only for example, you have not given enough information to be sure), how would you go about doing that? Would you not consider getting a voltage that is the same as the maximum sensor output (i.e., "reference"), putting that across a voltage divider, and adjusting that divider so it reads "10" on the voltmeter? Sure, there are other ways to do it, and a simple divider won't work, if the source is less than "10," but your initial question was, basically, what does this voltage divider do. Have you read the manual? Do you now understand the concept of "normalizing?"
And yes, you have put a 1M resistor in parallel with the DVM's input impedance. That will change the impedance the source sees a little, but if the output impedance of the source is only 100 ohms, the effect will be pretty small. That is not always the case and is one reason there are other methods to "normalize" meter readings.
John