That's a good question... and I'm not sure I do it correctly, but this is what I do on my Bridgeport.
I put a dial indicator on the table so I can see vertical movement. I tighten the gib up making sure there is no drag when I'm going up (just snug it a little). I lock the knee lock and back the screw off (turn counter clockwise on the hand crank to lower), but only move it within the nut's backlash. The lock should hold the knee and you should not see movement on the indicator. Then I remove the lock and you should see the table drop some amount (again, within the backlash of the vertical nut).
Now, I tighten the gib up enough to see this same holding action by over tightening the gib. And then, back off on the gib adjustment to a point where it drops freely with the turning of the crank.
So, I tighten it to the point of holding the knee (like the lock does) and then back off until it doesn't.
Of course, you have to remember that depending on the wear in your ways this could vary depending on the knee's position.
Not sure if this is the best way, but it's how I do it.
YMMV,
Ted