The chart can be configured to report on any of three time fields; Time Spent, Original Estimate, or Current Estimate. It will report time based on the specified field. If nobody is using the Log Work field to record Time Spent, then maybe the chart has been configured to report on one of the other time fields. If you own the dashboard where the chart is displayed you should be able to edit the gadget to see how it is configured on that particular dashboard.
When Time Spent is selected, then the chart is showing data stored in the Time Spent field. Generally the Log Work feature is used to enter that data.
And the chart will display that data for any issue that is within the scope of the "Project or Saved Filter" that you have set in the gadget.
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