Quench is the distance from the bottom of the head to the top of the piston. Things work out well in the range of 035-.050". Much closer and you have potential for the piston to touch the head. Wider though and it starts becoming detonation prone. It's not uncommon to see builds in the .080-.100" range and they will just outright suck at lower rpm's and when cruising. It will force you to drop the timing inorder to cruise at anything happy. Makes for higher cylinder temps and more heat soak into the head, block, piston and spark plug - all bad. Tight quench provides better squish of the air fuel mix creating a cleaner and faster burn, thus leading to a more efficient burn.
WOT, top end performance is not hampered by it much at all though. At 6500 rpm's a quench of .100 will have little to no ill affects on HP production.
Also, those heads you have are referred to as 'fast burn' heads. What is burning fast is the air/fuel charge. Hence the reason for the recommendation of starting out at 32 degrees of all in. And there is an excellent chance that you won't ever need 34+ degrees. The higher the number of all in timing implies that you have to ignite the spark sooner inorder for the max power portion of the burn to occur just after TDC. This same concept is seen in boosted builds where the timing is retarded as the boost increases because the gas will ignite quicker at high pressure levels (more boost=faster burn rate). If you dig into modern heads, i.e. LS, Coyote,etc, you'll see that the all in timing is very low, in some cases as low as 20 degrees. this is because of the efficiency of those heads' chamber design. This includes spark plug location as well.
If any of this is viewed as unnecessary info for your question(s), then disregard. I included it because it is a common mistake in builds and generally an unknown, misunderstood piece of info. I've typed up the 'how to' steps to tuning a dizzy for a SBC many times. If you would like, I can, let me know. Trying to tune it incorrectly can lead to a lot of wasted time and/or broken parts if you make any major snafu's. FWIW, I can attach some pics of broken ring lands out of engines that I've built