Yup that is it.
Put the larger one in like a standard seal for the pinion, then place the smaller rubber like one on the yoke, the smooth part that slides into the pinion seal. the lil rubber piece is designed to keep contaminants off of the seal lip. so do not push it all the way on the yoke. Just far enough that the pinion seal pushes the rubber piece to the correct place when you re-install the yoke.
The rubber piece is the one you are holding in your hand in the pic.
the thicker part goes away from the pinion seal with the flap designed to rub on the seal to be able to keep the the seal lip clean.