It's arbitrary. The degrees don't matter, and with your method you will get different scaling depending on the shape of the monitor. With that logic, over hanging a cloth on either side of the monitor to reduce its width will require a new sensitivity.
Use this applet. Change the FOV to visually see the change in magnification. Pretend it's a 180 degree frame just moving forward/back to have the desired angle of view within the monitor, since the monitor doesn't grow or shrink to change the amount you can see. As the frame moves forward/back, everything will scale by the change in magnification. You simply undo that scaling on the sensitivity, which is what 0% MDV/MDH achieves. It will scale the sensitivity by the change in magnification.
0% scales only by the change, so it will only work when dealing within that monitor. If you wanted to translate that sensitivity to a different monitor, you would have to take the focal length into consideration. Two different sized monitors could have the same angle of view, but require different sensitivities, as the physical scale will differ. The quantity of degrees on screen hardly matters. You just use them to calculate the change in magnification relative to that monitor. If you are wondering, if two different sized monitors both have the same angle of view, then you just need to scale the sensitivity by the difference in monitor size.
The focal length is the radius for the image. 2pi * radius = circumference. Translating the sensitivity using 0% MDV/MDH will maintain the ratio between the image circumference and the sensitivity circumference. Any other method is just an arbitrary change in sensitivity.
Here is a visualisation: