Pull the 3 point control lever to full up position. If the 3 point goes to the top of its range of motion without the relief valve bypassing, it’s adjusted properly.
So how do you know it’s at top of range of motion? How do you know the relief valve isn’t bypassing?
Range of motion: With nothing on the 3 point, pull the 3 point control lever to full up position. Walk around to the back of the tractor and manually push up on the lift arms. They should either go up some nominal distance or not at all. If you can push them up more than a little bit past full up position, you should be able to adjust the feedback to provide some additional range of motion. If you choose not to adjust it, you’re forgoing some range of motion but it shouldn’t hurt anything.
Relief valve: Again, 3 point control lever full up. You’ll probably know by hearing it if it’s bypassing. If you’re not sure just by listening, with the 3 point full up, do something with the loader. If loader power and speed are notably reduced, it’s bypassing. If it’s bypassing, you need to adjust it. Not optional. Adjust it.
Adjustment procedure for your specific model: Don’t know. Might be in owner manual. If not, would be in WSM.