Takes me a bit of thought to figure them out too, the first one I had to draw on a CAD program so I could rotate the parts. The first picture might add a little confusion as its two dials at 90 deg using one verier.
The main dials are at 5 deg increments, as yours are, (but I never got the numbers stamped). The vernier is cut at 4 deg increments, one degree less than the main.
So when your lined up at say zero degrees the centre of the verier is lined up, as we rotate the dial the next line on the vernier lines up at 5-4 or 1 deg, then the next line 10-8 or 2 deg and so on.
Wish i could say I was smart enough to have come up with the idea, but I wasn't, stole it off the dials on the compound and cross feed of the lathe.
Hope that helps Mark.
Your grinder is going to be a work of art, or Mark in this case.
Greg