Here's the basics of the 3rd axis, but first the 2nd axis is simply using your shop level, set your bow riser vertical or plumb in the upright and level position so it's not leaning left or right or front or back, then simply adjust the sight's level so the bubble is in the middle....this is so when shooting on level ground you will know when the bow is upright. Lean left you'll hit left, lean right you'll hit right, you'll miss more the further out you are shooting...etc.
The third axis is for the up and downhill shots. Hold your shop level in your hands so it is horizontal and level the bubble, second axis...then while holding at arms length level, pull the left side a few inches closer to you with the bubble still level....now holding that position, slowly raise your arms and the bubble should run to the right or uphill, move the arms down and the bubble reverses and goes left...this is why your up and downhill shots will be off the mark if you don't have the level set for the 3rd axis...remember that the bow torque or twist at full draw affects the setting, which is why you have to set your own bow for your form...if there was no bow torque, you wouldn't have this adjusment to do...
Sureloc makes a cool gadget for this that attaches to the sight, has a leveling bubble and a string that attaches to your bow string so you go to full draw and the string always keeps the pivoting level bubble in line with your line of sight, so you simply adjust the third axis so that is is level aiming 45 degrees down and up and remains level at throughout your range...if your sight does not have a 3rd axis adjustment, a lot of them don't-even though advertised as such, you have to shim the sight mount...let me know if that helps or not...look in Lancaster's catalog or website for the Sureloc 3rd axis tool....I believe it is the most accurate of the methods out there...or go on Surelocs website...very simple to use and a must. Cheers, Ryan