Found this, made me chuckle:
"GO and NO-GO gauges are used in factories, or when rechambering or installing a barrel. They are "factory specs." Any significant use or wear will result in the bolt closing on a NO-GO gauge.
There is no problem unless the rifle closes on a FIELD REJECT gauge, which indicates the rifle has or is close to excess headspace.
Let me draw a comparison. You buy a set of new tires. You know the factory tread depth spec is .33-.35".
So when the tread wears down to .32", you buy new tires because they are no longer factory spec. Of course, you don't get much wear out of the tires, which are still almost new, and you spend a lot of money. The wear ridges in the tire are the "Field gauge" for tires; tires are OK until they reach that point"