Exactly right. It is telling you that the car believes it is time for an oil change. HOWEVER, if the last oil change was before the car thought it was ready (so the light was not on), and the oil change person neglected to reset the light (as has happened with my 2004 Camry), then the light will come on early.
READ THE MANUAL! Yes, it's dull; but it does give you valuable info -- like how often to change the oil and perform other routine maintenance, and what all those warning lights mean. Be good to your car, and it will last you a long time. Fail to maintain it, or fail to heed the warning lights, and you'll be driving a clunker.