Matrix dimensions refer to the number of rows and columns, not the number of entries or unique entries. For a 2x2 matrix, the dimension is 4, but the dimension of the space of 2x2 symmetric matrices is 3, as it can be represented by a basis of three matrices. The discussion highlights the relationship between linear transformations and dimensions, specifically addressing the transformation from R^3 to the space of symmetric 2x2 matrices. It concludes that if the image dimension equals 3, the kernel must be zero, indicating the transformation is both injective and surjective, thus bijective. Understanding the distinction between matrix dimensions and the dimensions of specific matrix subspaces is crucial for resolving these linear algebra concepts.