I am wondering if velocity in formula means average velocity of fluid passing through cavitator, or velocity of fluid within the cavitator, between points with different pressure?
The Cavitation number (Ca) is a dimensionless number used in flow calculations. It expresses the relationship between the difference of a local absolute pressure from the vapor pressure and the kinetic energy per volume, and is used to characterize the potential of the flow to cavitate.
It is defined as Cavitation No= (P--Pv)/ 0.5 row (square of v)
or
diffeence of pressure divided by dynamic pressure head
There are many cavitation numbers depending on the purpose of research. If you want to define the incipient or end of cavitation, or cavitation threshold, or supercavitation, initial cavitation erosion or etc. and want to use data from previous studies, it is important to use the same cavitation number and to read the definition where the pressure difference and the speed is taken. In most cases you have to trust the selected cavitation number. Sometimes based on the experimental data (if published), it can make interesting conclusions or change cavitation number and propose new criteria.
If you're doing research perhaps for ultrasonic cavitator you should know the pressure distribution and choose correct place for measurements of the pressure difference and the velocity.