The strobe fires when the sparkplug fires. At low RPM the advancer is at minimum advance, if you had it on a smooth running electrical motor the tick would stay dead still but it's on a gasoline engine with 2 power pulses per revolution, so the crank is being accelerated by them and then coasting down a bit. That uneven RPM jerks the advancer around making the spark timing also jump around a bit.
Increasing RPM makes the centrifugal advancer advance the timing so the spark is more before TDC. This is to give more power, the fuel is ignited early so that it reaches high pressure when the piston starts down on power stroke. The air-fuel mixture takes some time to get burning well.
It's best to set the timing at the full advance mark around 3000RPM or whatever RPM is high enough for the timing mark to have moved till it stops and sits steady - the advance mark is before the F and T marks, just a small unlabelled line on the advancer plate. Two reasons: the F mark, as you have seen, dances around on almost all engines at idle RPM which makes setting difficult. Second, you will be at full advance for almost all your riding and advance has a large effect on power so you want it set correctly there. Also, too much advance can cause preignition which can melt your pistons.
Too much advance at idle causes poor idle and kickback when starting, too little advance at high RPM reduces power output quite a lot (and may burn exhaust valves). All auto/bike gasoline engines use an advancer system, balancing decent idle against high RPM power without an advancer isn't practical except for relatively low RPM and low horsepower engines as used on lawnmowers and the like.
Note that some problems with the advancer assembly or points plate can cause also the timing to dance around.