As previously mentioned, this is a depth gauge, not just for holes, but for any depth you can get it in to measure, say the depth of a slot.
To calibrate, wind back the centre spindle until it is just inside the fixed head bar of the mic. Then place the head bar onto a flat surface and screw in the spindle until it just touches the flat surface, readjust the thimble without moving the spindle in or out until it shows zero, and there you have it, calibrated.
Hope this helps
John