1) Its the maximum concurrent requests it can coordinate, not necessarily the limit to the number of requests it do. This coordination includes things like waiting for the replicas (determined by consistency level) to return the data. This is not active work so theres no reason to limit by number of cores.
2) Back pressure to your application pushing more than your coordinator is configured to handle at once is being applied in memory of your coordinator. The cost here is heap pressure and memory available to the system along with the time sitting in queue added to your latency.
Per your other question, I think you may be getting too focused on the NTR stage when the problem is likely in your data model/queries. If increasing that queue didn't help its probably not the cause. Typically the only scenario when the queued NTRs is the issue is when you slam a LOT of tiny queries at once (usually more than a single client can make as theres a 1024 default limit per host by default). Thats pretty much the only scenario that increasing the queue limit to smooth out the spikes helps. If it doesn't help then use proxyhistograms/tablehistograms/tablestats to narrow down the table and query causing the pressure. If its not obvious it may be a GC related issue or both.