¡THAT's THE WAY! I didn't even test the formula, but the right way is testing by yourself and trying with different ways to achieve what you want. ¡Congratulations!
You don't need an specific real variable for this. You can use either a Temporal real variable or a local. Actually, the main idea is to convert this later to Jass and use locals (Several of us can help you with that and it's pretty easy).
I found an easier way to do it; I tested it and it works, look:
Set Real_BA = (11.00 - ((Percentage life of (Picked unit)) / 10.00))
let's say we have 70% life:
11 - 70 / 10
11 - 7
4
And I guess that the ability is level 4, but at lvl 1 it gives 0 armor... right?
Actually the ability should give it's max armor (10) when the unit has 10% hp, since having the ability at max level when the percentage of life is 0% isn't quite usefulll.
Ability should have 10 levels, begin at level 1 giving 0, then you can give 1.1, 2.2, 3.3. ,4.4, 5.5, 6.6, 7.7, 8.8, 9.9.... or start the ability at lvl 2 with 2 armor already, then 3, 4, 5, 6...