What does this mean?
Easy Readers / Early Chapter Books are the books that help foster the transition from "Mommy read to me" to "I can read it on my own". The font is typically bigger, there are less words on the page, the pages are closer to the size of a big-kid book, and there are tons of pictures! But, they aren't picture books, nor are they middle-grade chapter books. These books also might have on the cover somewhere the words "easy reader" or "I can read".
A round 2 judge doesn't really have much to do until January when the Round 1 judges determine the "short list" of books they would like to nominate to be the best of the year. Round 2 judges then read all the books on the list and decide which book is the best.
You can read more about it here