Re: Spark Gap Tester
The risk of damaging an ignition component comes when you run or crank the engine with spark plug leads floating.
A floating lead doesn't really do anything - but - there is high voltage on that wire -- at least 15,000 volts at cranking speed, up to 30,000 or more with the engine running, and that much voltage will seek a path to ground [or "Earth" as it's called in places where you say "cheers"

], and can arc a pretty good distance. You don't want it grounding through something important. It's not a lot of current, just high voltage.
So, anytime you turn the engine over with spark plugs out, either disable spark by pulling the emergency lanyard (if equipped), or ground the leads to the block with jumper wires, or a spark gap tester.
For the WOT timing procedure, the #1 plug lead needs to be grounded, so your timing light can read the signal. And, plugs need to be out, so there's no chance of the motor actually starting during this test.