Actually, the adapter is properly marked because the implied concept is unrelated to the iris opening. Think of "open" as disengaged or free. Left in this setting, the lens pin and the adapter pin on a lens with a physical aperture never need to engage. For those of us who want the physical lens aperture unencumbered, we leave the setting open and make our exacting adjustments using the more-precise and well marked physical aperture. If you start using with the coupler on the adapter, then you run into the possibility that the lens will stay open when you are trying to close it down later using the lens aperture. I don't know why that happens, but it does (tested and confirmed this on several lenses that have properly working apertures).
On a modern lens that lacks a physical aperture ring, the adapter will work correctly whether or not the coupler is positioned in the "lock" or "open" position. It is also true that every K-mount body accepts lenses in the position that is similar to what is marked "lock" on the adapter. It is also correct that mounting in either position will not damage a mechanism; however, for some reason there have been times when I have had to jiggle the lens pin on lenses with a physical aperture in order to restore full range of aperture function. For purposes of consistency, I strongly urge people to remember to always mount a lens with the Fotodiox or similar collared coupler set to "open."
As requested by crewl1, I have put together a video indicating the proper technique posted on Youtube at