I paid tax in non-resident state (CA). I think that I claim the tax paid there as a credit to my resident state (VA). Is this correct?

Yes.  This is to prevent you from being double-taxed on the same income.  If you made 20,000 in California for instance, both California and Virginia are going to tax you for the amount you made there.  But Virginia will give you a credit for the California taxes up to the amount Virginia would tax you on the same income.  So if California taxes 500, but Virginia taxes 400 on the same income, you receive a Virginia credit of 400.  If California only taxes 300 on that income, you have a Virginia credit of 300.

In TurboTax, prepare your California (and other nonresident states) first so that your Virginia credits are accurately calculated.  Here is an FAQ to assist you with this:  https://ttlc.intuit.com/replies/3302052