When your opponent's monster declares an attack, you can remove from play this card from your Graveyard to make the Battle Damage taken by 1 "Gazelle the King of Mythical Beasts" or "Phantom Beast" monster 0. When this happens, that monster is not destroyed by battle.
You get the damage after the battle, because the problematic text on this card can not be found on the original Japanese card.
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Copy the text into the translator.
It's only supposed to protect a monster from battle. It makes no mention of protecting LP in either the TCG or OCG. (Or here, for that matter.) Reducing battle damage to a monster to 0 is just an awkward way of saying it can't be destroyed by battle. (It's the same reason a 0 ATK monster can't destroy anything in battle, because it's inflicting 0 battle damage to the opponent's monster.)
for anyone that plays D-heroes, this card works similarly to dreamer. Very useful.