Nope, you got it. Modes are completely separate from SHM armed states. Some of the early documentation on SHM, which is still available on the support site, called the armed states "mode" even though there already existed a system feature called mode so that was just a mistake that has led to considerable confusion.
You can set both modes and SHM armed states in a routine, if that helps any.
Did you need more information on what a mode is?