The LeapHandController script is attached to the LeapHandController prefab. The prefab serves as the anchor point for drawing hands. You can set the LeapHandController properties, such as which hand prefabs to use, in the Inspector panel.
When you play the scene, any hands detected by the Leap Motion controller are drawn relative to the position and orientation of the prefab.
If your hand is 20cm above the Leap Motion device, the virtual hand is drawn 20cm above the prefab position (if the LeapHandController transform scale is set to 1.0). Do note that the default scale is 20:1, so hands are drawn much larger than real-size. In the Unity Scene view, the approximate field of view of the Leap Motion sensors are shown.
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