ND filters sometimes use three different ways to describe the same thing.
Some filters indicate the number of "stops" of light that they block.
Some filters indicate the "percentage" of light which is allowed to pass through.
Some filters indicate the "density" of the filter where each "0.1" worth of density is equal to 1/3rd of a stop in exposure.
An ND 0.9 means it blocks 3 full stops of light (9 "third" stops). But you might find this called an ND-3. You could also find it sold as an ND 13 (meaning 13% of the light may pass through (really 12.5% but they round up)).
An ND filter doesn't "diffuse" sun per se. It just blocks a percentage of it and, in doing so, it changes your shooting circumstances. The most common use of an ND filter is to make it possible for you to slow the shutter speed to something slow enough to show motion blur (e.g. waterfalls). You might use it to increase the aperture size and reduce the depth of field. While you could just increase the shutter to decrease the DoF, that might not be practical if you also need to use fill-flash (so you need to keep the shutter speed down below flash-sync speeds AND still get to increase the aperture size.)