In general, the sensor framework uses a standard 3-axis coordinate system to express data values.
Image 1: Android Developers
The coordinate-system is defined relative to the screen of the phone in its default orientation. The axes are not swapped when the device's screen orientation changes.
The X axis is horizontal and points to the right, the Y axis is vertical and points up and the Z axis points towards the outside of the front face of the screen. In this system, coordinates behind the screen have negative Z values.
Note: This coordinate system is different from the one used in the Android 2D APIs where the origin is in the top-left corner.