The rule of thumb (4S or 2S glow) is that center of the tank should be about the center of carb fuel inlet spray bar that resides inside the venturi. But this has a lot of other (aircraft related) assumptions baked in that may or may not apply to your setup. But probably a good starting point in any event. This pic might serve as a good reference.
Mid tanking is basically trying to be a good 'average' position for a tank run. Its another way of saying averaging hydrostatic head, which is the vertical column of fuel in terms of equivalent pressure on the fuel stream = the distance between fuel level (top) and carb inlet (bottom). A full tank will have a slight positive head or higher fuel pressure & the engine may run slightly rich. A near empty tank can have low or no head & run leaner. Its not practical to be adjusting the needle as fuel level varies (and you generally cant in-flight), so a mid position is trying to average these end conditions so to speak.
If you elevate the exact same tank for example, you increase the head, which increases the fuel delivery pressure. We are talking low pressures psi-wise but actually quite significant in terms of needle valve setting & air/fuel ratio.
But typical RC flight vehicles deviate from stationary bench engines. As the model maneuvers the head can change quite dramatically. Just imagine this same picture rotating to different orientations as in climb or dive & now where is the fuel top & bottom. So its also common to put a pressure tap on the exhaust manifold & pipe this to the tank which gives a bit more positive pressure boost which is additive to fuel hydrostatic pressure.
Your stationary engine wont have these complicating 'flight' issues, so it really boils down to finding a reasonable tank position & needle valve setting combination that gives a good run & then basically just monitoring fuel level & actual running. The carb of course is seeing slight vacuum pressure from venturi throat airflow & manifold pressure so it can draw fuel at a slightly lower level (within reason). Similarly the tank can be elevated slightly so long as the needle valve can be screwed in & still meter properly. But this also has practical limits. If the tank is too high, fuel can also free flow into the carb / manifold / cylinders especially if engine doesn't start right away. This risks hydraulic locking & bad things can happen with an electric starter. So good to have a shut-off valve or simple line pinch between tank & carb in any event.