Setting up M16/AR15 iron sights
Take your cleared rifle and bottom out the rear sight with the 6/3 (or 8/3) visible on the port side. Viewing from above, find the hole in front of the rear peep and loosen the screw inside with a hex wrench. This allows you to raise the rear sight and independent of the BDC stamped on the dial.
For M16A2-type rifles each click is 1 MOA. Detachable carry handles on M16A4-type rifles yield 0.5 MOA per click. This works out to about 0.75 MOA for carbine lengths (M4) depending on the exact sight radius.
Raise the rear sight 4 MOA (4 clicks for a M16A2, 8 clicks M16A4), reset the BDC to 8/3 or 6/3 and re-tighten the screw in front of the rear peep.
In this bottom position, the 8/3 or 6/3 setting indicates a 300 meter (or yard) elevation zero. Click down 3 MOA and zero at 100, adjusting the front sight for elevation correction. This yields a 100 yard/meter zero (obviously) and the BDC setting will still be correct.