Android Sensors (upto FroYo) provide the application with "raw" data.
There is bare minimum of "cooking" (ie processing) involved.
The accel & compass device provide absolute accel & magnetic data respectively.
The gyroscope provides relative angular velocity.
Gyroscopes do NOT provide relative data wrt any specific state/position.
What you need to understand is that gyroscopic data is angular-velocity.
Angular velocity is simply, how fast the phone is rotating (in degrees-per-second).
So once you hold it still, gyro says (0,0,0) &
as you rotate, you get how fast it is rotating.
This continues until u again hold it back still
when the gyro reading again becomes (0,0,0).
Theoretically the gyro can be used in "callibrate" the compass.
But to do so would require a lot of experimentation on your part.
The ideal place to fiddle around would be the sensor-HAL.
NOTE: You would need to turn-ON all the sensor h/w even if
ONLY compass data is reqd. As you will be cross-referencing
the gyro/accel data for that. This will mean larger power consumption &
extremely poor battery life. All the sensors turned on continuously can
drain the battery of a standard Android phone in 4-5hrs.
You can read more Android Sensors here.