In theory, the two apertures give you a perspective view of comparable sized objects at relative distances. Again, in theory, a man viewed at 100 meters through the large aperture, should appear the same relative height through the small aperture at approximately 300 meters. The small aperture reduces the margin for error as the target progresses further away from the shooter. Once the optimal range is achieved, the the margin for error begins to increase again, just as it did with the large aperture.
Some of today's sights have objective centers (the middle of the apertures hole), the same height from the center of the pivot point. Some have attempted to aid longer range shots, by raising the small aperture, and others, such as Knight, have developed sights with a single size aperture and micrometer adjustable base to raise the sight for a specified range.
With the old M16A1, we essentially had to use the Tennessee elevation method for adjusting for longer ranges. Shooting a 300 meter range with pop up targets at 50, 75, 100, 150, 200, 250, and 300 meters, using the small aperture, we had to shoot low on the 50, dead on at 250, and high at 300 to hit the same relative location on the target. In essence,due to the rise and fall of the bullet through its' trajectory, belly button at 50, center of mass at 250, and the head at 300, in order to place center of mass shots on each target. I believe when we got the A2's or possibly the A3s', the rear sight had an adjustment for elevation/ range on the rear sight.
I could be wrong, it's been 22 years since I retired, 31 years since I was an instructor (Drill Sgt.), and 43 years since I was in basic, so the memory could be fading.
OK, I've spouted my minutia for tonight.
Good Luck and good shooting.