Continuity is mainly used for checking the integrity of circuit wiring that has low resistance. Your meters specs should give you the threshold for when it tones and when it doesn't.
The reading on the scale is what matters - as long as it isn't "OL" you have some form of continuity.
Real world application: Your fat, laying on your back, your belly is in the way while you are working up under the dash of a schoolbus looking for a broken wire. Since the meter is in a place you can't see (on your belly), that tone comes in handy once you have made connection at each end of a wire. Other times I just watch the display.