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The float drop spec on a Ford/Holley 94 carb in my opinion is to make sure the fuel valve needle doesn't drop too far and possibly cock and stick. Just my opinion. Also prevents the float from hitting the bottom of the bowl.
It's measured from the gasket surface of the carb top to the bottom of the float. And the tab on the back of the hinge is used to move the float up or down.
A good spec for the float drop is 1 17/32". The float Level with the fuel valve closed is 1 9/32". That's only 1/4" of float travel, but plenty to open the fuel valve.
Sal