The Series 6x and 6xx have generally the same carriage. There are minor differences between each but I believe the adjustments are similar for all. (According to my manuals, the slotted screw is on a 2013 or 2516 with a spanner collar while the 1610 doesn't have a slot and instead has a split collar.) The inner screw or stud adjusts the throw of the handle while the outer collar is sort of a locking device. The stud is screwed into a shaft with two floating geared friction drive wheels. One wheel is geared to the drive rod while the other wheel is geared to the cross slide/carriage feed. When you push the feed handle downward, it rotates a cam that pushes against the stud. Pushing the stud outward pulls the shaft with it, forcing the two drive wheels together causing them to lock, thus transferring power from the drive rod to the cross slide or carriage. By screwing the inner stud in, you tighten the handle (less throw to engage) and by screwing it out, you add play to the handle (more throw).
If you ever have a feed that is locked and won't let loose, back out the inner stud until the handle is loose. Tap (smack) the stud with a brass or lead mallet to jar the two wheels apart. The friction surfaces are slighlty coned so it is possible for grit/shavings/crud/etc. to get into the apron and cause the wheels to stick even with the handle is loosened. The only thing trying to keep the wheels apart is a stiff spring as you can only compress the wheels with the handle. In other words, you cannot pry them apart by raising the handle.