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Yes, it is zinc-oxide based heat sink compound, to aid in transferring heat from the unit to the body of the car, which should act like a heat sink. The purpose of it is NOT to "insulate", but to fill voids, both visible and invisible, between the two metal surfaces. It is NOT as good as straight metal - to - metal contact between two absolutely flat and parallel surfaces, but it's a lot better than air.
So, spread it out completely and evenly on the (totally clean and flat) bottom of the EZL, I'd say just enough for complete, even coverage, and then put it down on the (completely clean) surface of the body, and screw down. It is OK, and in fact GOOD, if some oozes out.
BTW, I think the bottom of the unit is painted with a very thin layer of paint, or, did you get a thin sheet of plastic with the unit? If you did, this should go between the unit and body to electrically insulate it. The bottom of the unit is probably electrically hot with (unfused!) +12.
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