The black dial on these carbs houses a bi-metallic spring which reacts to heat supplied either through electricity when the ignition is switched on, or in older models via heated air plumbed through a tube attached to the exhaust manifold (hot air choke). When the spring is cold, the tension created tends to force the choke butterfly plate closed. As heat is applied to the spring, opposite tension allows the plate to open at a slow and steady pace until it reaches full vertical. This is a timed event that takes roughly five minutes from start to finish. As long as the heat source remains, the plate will stay open. The dial is what allows one to adjust the spring tension which controls how Rich or lean the choke setting is and thus the overall duration from fully closed to fully open. The base setting is smack in the middle of the adjustment range. In the dead of winter, it is a common practice to adjust the dial one or more notches towards the Rich direction as engines tend to require longer warm up time in extreme cold. The adjustment often goes back to center or even a notch lean in the middle of summer.
The dial has little if any influence on the applied choke fast idle speed. There should be a small set screw on the same side of the carb as the dial, but behind it and facing down at a slight angle. It can be difficult to see with the carb on the engine and without some head contorting. Anyway, this screw sets the tension applied to the graduated fast idle cam. The general idea is to set it so that it holds the engine speed at roughly 1600 rpms on initial cold start up, which helps keep a cold engine from stalling out. The fast idle cam is graduated, so that as the choke plate opens, the fast idle speed can automatically step down roughly 200 rpms per notch. The fast idle speed can also be cancelled manually ahead of schedule by blipping the throttle, which should instantly drop the engine down to a curb idle speed of roughly 7 or 800 rpms.
A closed choke plate should snuff out all but the coldest of engines. If a warm engine continues to run on with a closed choke, then it is sucking air in from another other location...aka vacuum leak. This jives quite well with the direction our conversation has been going in for the past x number of months, as also evidenced by your wildly erratic vacuum needle. Now the source of this vacuum leak could be outside of the carb ie power brake booster, ruptured vacuum line etc...or it could be part of the carb, ie leaky gasket, incorrect gasket, internal orifice that should be plugged remaining open to the atmosphere etc...or both!!! So the problem could conceivably still be within the carb.