Could you explain the big picture? Because this is confusing:
It’s a Take (Receive) Damage function yet it seems not only to Apply Damage instead - but there is also no Damaged Actor specified - double confusion! 
There would be no point in Apply Damage since nowhere in your screenshots can we see the damage receiver:
Component system Health and Fire damage
How is it supposed to work, ideally?
- player has a health component
- player steps into fire
- fire damages the player (over time I presume)
- player’s health component handles the damage received
Am I close? And one more thing, is this just for Fire Damage or is there going to be more buffs / debuffs / effects? Emotional Damage, for example?