The magnification ratio is along the lines of the following:
A ratio of less than 1:1 ie 1:2 or more is not considered a "true" macro, a ratio of 1:1 is a standard macro and 2:1 and bigger are increasingly magnified macros.
The ratio, as I understand it, is the magnification of the subject as captured on the camera's sensor. 1:1 projects a lifesize image onto the sensor. 1:2 is half lifesize and 2:1 is double lifesize on the sensor and so on.
Hope that helps!