Here's my take for 8TPI lead screw:
Multiples of 8 such as 8, 16. 24 tpi engage anywhere ( the chaser dial does not have to be used)
If the tpi can be divided by 4 such as 12, 20, 24 tpi use any of the 8 marks
If the tpi can be divided by 2 such as 10, 14, 18 tpi use any of the numbered marks ie. 1,2,3, 4
So my answer to your question wrt cutting a 10 tpi thread is no you can't use any of the 8 marks only any of the 4 numbered marks.
I was a bit hesitant to give my way because it dissagrees with your manual.
If you want to know how I remember this:
8 tpi lead screw and a 16 tooth gear in the chaser dial, so 16 divided by 8 = 2
Now if the tpi can be divided by 4 then 4 multiplied by 2 = 8 (any of the 8 marks can be used)
If the tpi can be divided by 2 then 2 muliplied by 2 = 4 (any of the 4 numbered marks can be used)
DaveH