What does 'delete account' in icloud mean?

I want to remove my apple id/icloud info from my daughter's itouch so she does not receive my backed up info, etc. What will happen if I choose 'delete account' under icloud on her itouch?  Will I lose any info on her device?  She also has an iphone and so do I.  I just don't want to lose any apps, contacts, pictures, video's etc., on any of our devices.  Can someone help, thanks.

This deletes your iCloud account from the iPod touch. If you don't want to lose her data, turn off Contacts, Calendars, Notes and Reminders manually before delete her iCloud

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