Yeah, at 350 dpi, at 100%, the on-screen size of your page will be larger than a physical paper sized at 8.5x11 inches. The long and probably far too involved explanation of what dpi - dots per inch - actually means is available here. The short version i that it is used in digital mediums when describing the resolution of an image, and in printing when describing the size of the halftone-dots used per inch of paper; basically, the amount of image information is packed into each inch of the image.
It's possible to create a canvas that is 8.5x11 inches and IS the same size as a physical paper when you zoom in to 100%, but that means setting the dpi to 90, which is far too low to turn out a clear, un-blurred print.
So yes, when you send your printer a file for printing, your 350 dpi file will come out as an 8.5x11-inch page, even if at 100% zoom on your screen it looks a lot larger.
Don't worry - printing processes and how it all works can be tricky to wrap your head around, and it's not like all this art software comes with a how-to manual on it! I've had to figure this out step by step myself, so I'm happy to pass it on to others. <3