I would set sag at whatever is recommended for the frame, likely 30% or less since this seems like an XC fame. Set your initial rebound rate to whatever is recommended in the shocks setup guide per the air pressure you need to set sag to 30% or whatever is recommended for the frame. Rebound controls the speed that the shock recovers from an impact. Too fast and the bike will feel like it skips over bumps and have low rear traction. Too slow and the shock will pack up and not effectively absorb the next bump also causing poor handling. Make sure when you set sag that compression is set wide open including the open mode adjustment screw if your shock has one. After this set compression. I would leave it open at first and dial back as needed to control excess shock movement due to pedaling, etc. Too much compression can make the shock feel very firm. SIDLux shocks are typically used on XC or other shorter travel bikes so it is expected to be on the firmer side than the plusher side.
Sent from my Pixel 4a using Tapatalk