Seems to me it was a zero-set feature. Mine has it I'm pretty sure, but it's been in there since '77 or so too, so it's hard to remember.
Have you tried fiddling with it while you watch the needle? See if it moves the zero point slightly.
Then again, it could be a calibrating tensioner for setting the gauges relative accuracy. Get it to something like 2500 or 3000 rpm, while checking it against another (supposedly known-good) tach, and trying to get the readings the same.
Probably reading too much into it there I suppose. It's probably just a fuhnertin rod end for the gangly wrench.
Self adjusting Quisinart Flux Capacitor initial setting dial.
Paul