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*some mods change the effects of the stones, e.g. So, each time a spell (or Shout) is used on you, you've a 50/50 chance that it will do nothing at all to you if your magicka is full, or nothing other than replenishing some of your magicka if it's not. What it *doesn't* do (which is where any confusion may lie) is absorb 50% of all incoming spells. It works on dragons, too (I have a Dunmer on the PS3 who has the Atronach stone and pretty much just laughs at fire breathing dragons in particular.) Absorbing the spell = you take no damage and your magicka gets replenished by whatever amount the caster used on it (not sure if this means Shouts don't do that part).
It's arguably better for a non-casting character, as they won't miss the magicka regen. it gives you a fifty percent chance of absorbing any incoming spell, if i remember rightly. (This is my understanding of how it works and I may be getting some details wrong, brain fog is a pain in the bottom.) It does, at least in vanilla*. Originally posted by Lion Ornstein:Magicka absorption doesn't lower the damage you take, though.