It will restore HP like you said, plus all the ailments that show with the little icon which you said as well:
Sleep, Freeze, Burn, (Bad) Poison, Paralyze
It will also cure 'temporary' ailments:
Confusion
Infatuation (when they're immobilized by love)
Curse
Leech Seed
Nightmare (although this would break anyway because Full Restore will wake you up)
I think that's all of them!