yWriter uses the first full stop (.) or line break on the line containing the word 'scene' (in square brackets) to extract the description. Everything after that line break (including all this text) will be included in the long description.
This part will be used for the longer description in Scene 1.
All of this is part of the description for Scene 1. Everything is included until there's a 'scene' or 'chapter' tag.
[scene] A description for Scene 2 in Chapter 1
Because there's no 'chapter' break, this scene will be included in chapter one.
[chapter] Chapter 2
[scene] Description of the first scene in chapter 2
As you can see, we've had a chapter break. Everything between the 'chapter' tag and the subsequent 'scene' tag will become part of the chapter description. This should be kept short, usually restricted to just 'Chapter x'
[chapter] Chapter 3
[scene] Description of the first scene in chapter 3
This chapter has 2 scenes. To add another, set the cursor anywhere after this sentence and click Insert Scene Break. (If you click when the cursor is in the middle of a sentence, that's where the scene break will be.)
[scene] Description of the second scene in chapter 3
Hopefully you can see the idea by now. Chapter markers denote chapters, one or more scene markers denote scenes. Make sure every chapter is followed by a scene.