Here's a way to visualize exactly how the tolerance adjustment affects the magic eraser, one of the tools that has a tolerance adjustment. The same sort of approach can be taken for other colors, other tolerance settings, as well as other tools that have a tolerance adjustment.
To start, set up a PS canvas with a black background layer, plus three gradients all on a single, second layer. The first gradient is in hue, the second is a gradient in saturation, and the third is a gradient in tone (brightness). Then, place the magic eraser tool over one of these gradients, and click. This will remove the parts of each gradient that are within the tolerance setting of that tool, letting the black background show through. Here are some examples:
1. Removing fully saturated green (by clicking near the center of the top, fully saturated hue bar), tolerance = 128
2. Removing fully saturated green, tolerance = 178
3. Removing fully saturated green, tolerance = 255
4. Removing medium saturated reds (by clicking near the center of the lowest bar, the gradient in saturation), tolerance = 16
5. Removing medium gray tones (by clicking near the center of the middle bar, the gradient in brightness), tolerance = 16
As you can see, increasing the tolerance (ie, #1, 2, and 3) when removing fully saturated greens widens the black gap in the green bar, as expected, but also, when you set it to 255, also starts introducing gaps in the other bars. Similarly, removing medium saturated reds with a tight tolerance (ie, 16) makes a gap in the lowest bar, but doesn't affect the other bars (ie, which have full saturation, or zero saturation). An analogous effect is seen when removing some unsaturated middle tones -- it doesn't affect either the fully or partially saturated colors.
My suggestion is that you set this up for yourself and experiment with it to see exactly what the effects are for tolerance settings and colors that you are interested in. Another very interesting variant of this experiment is to also include gradients in R, G, and B on the same layer, and then see which sections of those curves are removed when you click on say, a mid-tone, mid-saturated, non-primary color. I think you should see something very interesting!
HTH,
Tom M