The second parameter is the offset of the base address that will be loaded.
I started to take some pictures to post here and make a good explanation but I found an interesting lecture video that will explain much better than words and will save a lot of time.
LC3 Instructions – LD, LDR, LDI, LEA
The video is explaining the differences between the load instructions for the LC3, highlighting the differences between them.
In your example:
You have your data:
A .FILL X1234 B .FILL X370B C .FILL X370C
Running your code:
LEA R0, A -- R0 has the address of A LDI R2, C -- R2 has value of which address C has LDR R3, R0, 2 -- R3 has the value of C -- because R0 has the address of A + 2 positions = C