It means exactly what it says - a link that stands alone in a section such as the application names in Application/Internet. How many? Ideally every link in that situation. The rules we are formulating come from the needs of the translators.
So it doesn't apply to a link like this for example? (i.e. one in running text.)
No - that does not stand alone. It would simply be included in the wider translate tagging. Remember that we have specified, "If in doubt, include it inside the tags". It's much easier for the translators to make the judgement than it is for them to have to request tag changing so that they can use localised versions of things.