Yes, this is also what I've been taught and it is quite traditional. It just has to do with having practiced in previous lives so that merely seeing a title in this life the entire meaning and import of the text unfolds within one's mind, due to that latent capacity being triggered by connecting with the title. Also, Tibetans tended to follow formulas for coming up with titles for teachings; i.e. the way the title is phrased and certain terminology used in it was often related to different Dharma topics, sort of like code language that signals the topic to be discussed and encapsulates the meaning.
Anyway, from my vague memory, I think the whole schematic goes something like (1) students of highest capacity will, upon seeing the title, experience complete understanding of the text, (2) students of middling capacity will, upon seeing the title, know what general category the text belongs to and have a general understanding of what it will cover, and (3) students of lowest capacity will at least understand it is a Dharma text and have respect for it. Again, this is from my rusty memory and probably not exactly correct, but you get the gist. It's just about karma from past lives.