Yes, it sounds like the proposal is to raise the FFL 1.85m. You may want to check if there is a reason for that: Maybe it is changing position on site, to a higher part of the land, maybe it’s in a flood risk area (even then, 1.85m sounds a lot), maybe it’s proposed to partially cut a basement in underneath.
Is it a steeply sloping site?
A line through the optical level is the height of collimation. If both floor levels are taken from the same collimation then the higher floor level will have the lowest staff reading as the base of the staff is on a higher level.
But surely, on the final topo plan, all levels will be referenced back to the primary datum. The staff readings are local readings only and therefore not absolute and, as such, won’t be plotted on the final site plan.