The teeth on the chasing dial should be a multiple of the leadscrew. So with an 8 TPI leadscrew, the chasing dial should be 8, 16, 24, 32..
Good point. For a 28 tooth thread dial to work, that would require a leadscrew pitch of 7 TPI. Otherwise 1 complete rotation of the dial will result in you not being exactly aligned with the thread for the next pass.
All this kind of makes me wonder if this is really a metric thread dial and wonder if the leadscrew is 8 TPI or if it is actually a 3mm pitch leadscrew (8.47 TPI).
The Grizzly manual for this lathe is confusing, as it tells you to install the Z28 gear on the thread dial for imperial, and the Z30 for metric. But than it says not to use the thread dial for metric and leave the leadscrew engaged for cutting metric threads. And than it says consult the chart for gears and thread dial positions for metric??!! So if you don't use the thread dial, why the chart for metric? And if this is for imperial, where is the imperial chart?
Poor Chinese translation of english documents leading them to manufacturer something they don't understand, and than (poorly) translate their faulty chinese translation back to english? Z28 used for some metric threads and Z30 for others seems more likely.
The Sieg C6 lathes have been very popular lathes for a long time (this is the grown-up version, the SC10). Grizzly sold a lot of copies of their version of the C6 combo machine (G0516). They didn't have a thread dial, but Little Machine Shop sells one, and from the pictures it looks (SWAG) like it has 8 divisions and a 24 tooth gear on it. The spec for this machine says 8 TPI leadscrew.