Each setting from 1 (which is stock) up to 6 are incremental increases in power at the rate of about +20% for each level. So, if you change in an upward direction you should notice a performance increase and the reverse if you dial downward.
As far as the transmission learning process, here is how it's explained by Banks:
The 6.0L Ford Trucks equipped with
the TorqShiftTM 5-speed automatic
overdrive transmission use an adaptive
shift control logic. This will require the
transmission to learn how to cope
with the additional power created by
the Banks Power products before it
will shift properly. Additionally, the
Banks Six-Gun Diesel Tuner will require
a short learning curve to characterize
the transmission in order to optimize
fueling during gear change events. The
following sequence must be followed
to allow for collaborative learning
between the Banks Six-Gun and the
transmission’s control system. Failure
to follow the sequence can result in
damage to the transmission.
Perform the following sequence
at a location where it is safe to
accelerate to 60 mph without
exceeding the posted speed limit.
1. Start the truck and allow the
engine to reach normal operating
temperature.
2. Turn the Six-Gun selector switch to
the #2 position.
3. Accelerate with the pedal to the
floor, from a standing start to 60 mph.
Repeat three (3) times.
4. Cruise at 30 mph, then press the
accelerator to the floor to cause the
transmission to downshift. Continue
accelerating to 60 mph.
5. Repeat steps 3 and 4 for the next
power setting.
6. Continue to increase the power
setting and drive cycle until the
desired power setting is achieved.
The TorqShift™ 5-speed automatic
transmission will continually adapt to
the power output of the engine to
optimize shift quality. This will result in
the transmission un-learning how to
cope with the higher power settings of
the Six-Gun Diesel Tuner, if the selector
switch is returned to a lower power
setting. The rate that the transmission
un-learns how to cope with the higher
power levels, when switching to a
lower power level, depends on the
driving cycle. The transmission will
quickly adapt to the power setting if
the driving cycle includes regular gear
changes at high loads. The
transmission learning procedure
will need to be repeated when
switching back to the higher
power settings once the
transmission adapts to the lower
power settings. It will be apparent
when the transmission adapts to the
lower settings by monitoring the feel
of the gearshift. Gear changes will be
noticeably harder when initially
switching from a higher to lower
power setting. This will soften as the
transmission adapts to the new
setting.
For example: If the transmission has
adapted to level 3 and it is desired to
go to level 6, the transmission learning
procedure can start at level 3.
IF TRANSMISSION SLIP IS DETECTED
DURING THE TRANSMISSION LEARN
PROCESS, REDUCE THE POWER LEVEL
BY ONE, AND START OVER AT STEP 3.
The most important thing is to follow steps 3 and 4 whenever you increment the dial, meaning going up in numbers. Also, if you are currently on 3 and want to go to 6, you must do the relearn process at level 4, then 5 and finally 6.