Do you have a link to the IRL mathematical concept you're saying the show is referencing.
The specific arrangement of terms as, like, a proper noun is something they came up with, but based on the graph shown when talking about it, they appear to be referencing the properties of a
Helix along with the obvious reference to
Finiteness as well as throwing the word infinity around a lot.
Mathematically, a Helix is an infinite 3D function which graphs, well, a helix shape. (
). Across any specific
curve of the helix (even a finite one), there exists uncountably infinite points.
In the context of the show, they're saying that there exists an infinite spiral of universes. Rick sectioned off a finite 'central curve' where all the infinite Ricks are. Within this curve, they've isolated a type of universe which contains only Rick, but there still exists uncountably infinite variants of Rick.
Mathematically, for example, if you sectioned off 1-2, you would have uncountably infinite various decimals in-between, but they'd always either be 2 or start with 1, you'd never have a number that starts with 3. Similarly, outside of that range you'd never have a number starting with 1. Similarly, it's possible to break up an uncountably infinite multiverse so that some finite section has Ricks and only Ricks as the smartest people. Their use of words like 'iteration' lends to a cyclical nature as well, which is fitting for a helix, in that an 'iteration' is just a repeat of a process. When they say a dumb rick comes from 16 iterations off the central finite curve, presumably they're saying that this dumb rick comes from 16 curves of the helix over from where the 'central' one is.
There
is a comic panel which aligns more with what you're thinking, just showing four different types of Rick multiverses in circles, but this is directly contradicted by the (more canon) show, in which there are Ricks at least 16 iterations which don't fall into any of these categories, not to mention the show says it contains universes where Rick is the smartest and not just every universe with a Rick in it (which is why dumb Ricks are outside the Curve.)