Just the basic idea...layman's terms, since I'm still downing coffee.
Think of the bands as a 'clamp'. The two sets of clutches set in their own 'drum', each band around the outer shell of those drums. Adjusting the bands...is adjusting the amount of clamping tension the bands apply to those drums, locking the drums. The bands have friction material that goes against the drums...that can wear out, or burn, if not adjusted right. That's why the adjustment numbers are there...for the right 'clamping' pressure on the drums.
No. You don't want to go out of range much on the adjustments. It will either slip, or grab too hard, either way wearing the bands out.
When I was a youngster, that was one of the first things I learned on these things.
Trans was slipping a little. Being a dumb kid, had to take her to the trans shop. Five minute deal. Trans guy was cool...thought the car was cool...gave a wink, asked if I'd like a 'little improvement' on shifting...sure! Watching the whole time, he made the adjustment...then, added one quarter turn in. Thing shifted like a banshee, solid, firm, and I liked it!