The rear shock has a fixed travel length, dictated by the shock. Motorcycles are fairly light and the weight of the rider is the major load carried by that shock. So, most mfg's have provided for that variable load, rider and additional rider and other load.
If it were not adjustable then when you add a passenger (or any other large load) the spring will quickly hit the limits and you are left with a "hard tail" bike.
You adjust the preload so that you don't bottom the suspension on a big bump. At that setting you have the most suspension travel.
It is a trial and error process. Set it less and less until you feel the suspension bottom out, then increase a notch or two. When you add a large load or passenger, crank it up a bit.
charlie