For example, can I use button 1 to switch the spotlights on the living room ceiling on and off and dim them, button 2 to switch the spotlights on the dining room ceiling on and off and dim them, etc.?

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Pressing button 1 switches the stored lamps on and you can dim them.
Pressing and holding button 1 switches the respective lamps off again.
Do the same with the other 3 buttons.

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Question about Philips Hue Tap dial switch

For example, can I use button 1 to switch the spotlights on the living room ceiling on and off and dim them, button 2 to switch the spotlights on the dining room ceiling on and off and dim them, etc.?