A bolt hole circle is sine and cosine around a center: X = center + radius times cosine of the angle, Y = center + radius times sine. The formula and a worked set.
The graph intuition is half right: G-code positions live on Cartesian axes. What the graph picture misses is time, force, state, and the third dimension.
G54 tells the machine where your part zero is. Here is what a work offset stores, how G54 to G59 differ, and how to set one without cutting in the wrong place.