ASetter s t a b is something that turns a function modifying a value into a function modifying a structure. If you ignore Identity (as Identity a is the same thing as a), the type is:
type ASetter s t a b = (a -> b) -> s -> t
The reason Identity is used here is for ASetter to be composable with other types, such as Lens.
Technically, if you're writing a library, you shouldn't use this type for setters you are exporting from your library; the right type to use is Setter, but it is not provided by this package (because then it'd have to depend on distributive). It's completely alright, however, to export functions which take an ASetter as an argument.