To calculate $\mu$ of a point on the Sun:
$\text{azimuth of point} = \arcsin(\frac{d}{r}),
\mu = \cos(\text{azimuth of point})$
where d=distance of point from centre of disc, and r is the radius of the disk.
You can try visualising it from the side of the disc. Here's a nice figure (though I would exchange the r and a notation for more clarity, as r usually denotes radius): https://phys.libretexts.org/Bookshelves/Astronomy__Cosmology/Book%3A_Stellar_Atmospheres_(Tatum)/06%3A_Limb_Darkening/6.01%3A_Introduction._The_Empirical_Limb-darkening
Mu will be 1 if the point is in disc centre (i.e., azimuth is 0 deg.), and it will be 0, if it is on the limb (i.e., azimuth is 90 deg.). So what it tells you basically is how far the point is from disc centre. That's why it is used to describe limb darkening.
I am not from the community that looks at planet transits, but I guess one could describe that also with mu, and then if it is right in the centre of the observed disc, azimuth would be indeed 0 degrees. However, as I understand, it should be referring to something on the surface, rather than something passing in front of the disc.