For a full explanation look at OMB Warehouse video on youtube. Type "OMB timing key" in search bar.
All these motors have an amount of timing advance built in, that is, a certain amount of the 360 degree crankshaft rotation where the spark plug fires and ignites the fuel/air mixture in advance of the piston having reached top dead center (TDC).
The flywheel shaft has a groove (keyway) for a piece of keystock that guides the flywheel's matching keyway onto the shaft. My own billet flywheel has that keyway at 28 degrees advance. A timing key (piece of keystock), (mine's a #6 x 1.2 = 7.2 degrees), isn't nicely square like the factory one, it's notched out. When you twist the flywheel up against that notch, the factory keyways no longer line up, the flywheel has advanced some.
Watch the Gray Goat guy on the OMB video, he'll help you understand it.