Umm... no. The armor setting on the Units and Heroes settings board is base armor--armor the unit has before it gets upgraded. As best I can tell, there is no way for each armor upgrade to increase armor by more than 1 point.
Damage upgrades, OTOH, depend on the bonus damage attribute. So, if you want each upgrade to increase a unit's damage by 10 points, set that unit's damage bonus to 10.