How to best use H Wireless?

I have a SteelSeries H Wireless headset, but I've never been sure what the best way to use it is. I'm not an audiophile so my knowledge of the technologies is limited. According to the box, the H Wireless has three Dolby Technologies. They are Dolby Digital, Dolby Headphone, and Dolby Pro Logic IIx. According to the manual the base can be hooked up via optical or USB.

I currently watch movies and game on my PC. I have an Xbox One, but I don't use it really. My motherboard is an Asus P8Z77-V and it has a Realtek ALC892 HD Audio codec. So when I go to Playback devices in Windows there's all the settings there to configure as well.