Crane Cams can explain it better than me:
What is Hydraulic Lifter Preload?
Mechanical cam designs require a running clearance or valve lash; hydraulic lifters are just the opposite. When the rocker arm assembly is properly torqued down into position, the pushrod must take up all the clearance and descend into the hydraulic lifter, causing the pushrod seat to move down by .020” to .060”. The distance that the pushrod seat moves down away from the retaining lock is the “Lifter Preload”. The hydraulic mechanism requires this precise amount of “preload” for it to do its job properly.
What happens if the amount of Hydraulic Lifter Preload is wrong?
If clearance exists between the pushrod and the seat in the hydraulic lifter, after the rocker arm assembly has been torqued down, you will have no lifter preload. In this case the valve train will be noisy when the engine is running. All of the hydraulic force produced by the lifter will be exerted against the lifter’s retaining lock, and this could cause the lock to fail.
If the opposite occurs and the pushrod descends too far (more than .060”), then you have excessive lifter preload. In theory, a hydraulic lifter can pump up whatever preload you put into it, therefore with excessive preload, as the engine RPM and oil pressure increases, the hydraulic mechanism will pump-up the pushrod seat. This will cause the valve to be open longer and lift higher. This will decrease the cylinder pressure, lowering the performance of the engine. If the preload is excessive it may cause “backfiring” from the engine. How to correct this situation will be explained in the next sections.
When rebuilding an engine, what can cause Lifter Preload to change?
Almost anything can affect lifter preload. If you do a valve job, surface the block or heads, change the head gasket thickness, or buy a new camshaft, the amount of preload can be affected. Sometimes these changes cancel one another out and your preload stays the same; this is more by luck than design. This is why you must always inspect the amount of preload the lifter has when reassembling the engine and be sure it is correct.
