I've read a paper which used normal distribution in order to assign a number to each entity as follows:
Each user has a quality measurement qi ∈ [0, 1]. For the experiments in this paper, the quality of a user is chosen from a normal distribution with 0.5 for mean and 0.5 for SD
May you please help me, what exactly they are saying?
Each user gets a "quality" value between 0 and 1. The probability of getting a number is symmetric about $0.5$, and is given by a normal distribution, which defines the probability of being a given "distance" away from the mean.
That "distance" is measured in standard deviations and called the $z$-value. The formula for the $z$-value of a given measurement $x$ is $$z=\frac{x-\mu}{\sigma}$$
where $\mu$ is the mean, $\sigma$ is the standard deviation.
The standard normal distribution has $\mu=0,\sigma=1$. The above formula effectively converts values on another normal distribution to the equivalent value on the standard normal distribution. The equivalence for the statement you refer to, is explained in the diagram below. Values outside the valid zone for $q_i$ are likely ignored.