This action will pause the game by setting the engine time scale to 0. The inverse of this is the "UnPause" action. Check the box to pause all running sounds as well. If you want more fine grain control over stopping sounds use a "Background Sound Player" component and setup rules to stop it manually when the time scale value is 0.
If this action is used to pause the game make sure to have an entity, most likely a button, that has its time scale property disabled so that it can be clicked on to un-pause the game. If an entity has its time scale enabled it will become inactive when the time scale value is set to 0. In affect causing a game pause.
The time scale toggle is set for all components on the entity just by toggling the checkbox selection at the top of the properties panel.