I believe CD 1 is the day you either have light, medium, or heavy bleeding, so yes it is the start of bleeding, even if it's not all day, but if it's spotting that does not count as CD1.
You have to have actual "period" bleeding for it to count as CD1, as spotting could be implantation or the start of a period. But keep in mind if spotting is what you are used when you start your period then I would say to count it as CD1. So it depends on your period history, but FF normally expects either light, med, or heavy bleeding as CD1. Does that make sense?

Hope that helps!