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but I am somewhat confused on how it is used
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The instructions in either the Wilson gage or the Hornady Lock-N-Load are very clear on how to use them. You are using a reference from a datum point on the shoulder to the head of the case. You can used a round fired in your rifle, and set your loading die to move the shoulder back 0.002" to 0.003" for your semi auto loading rifle.
I have included the SAAMI drawing for cartridge and chamber. The datum is located at the .400" diameter on the neck. Since headspace can and will vary from rifle to rifle, you need to determine how to size your brass. The Wilson gage will also double as a way to confirm your loaded rounds "should" fit your chamber.
