Troubleshooting Head Components

No, I do it on V-8s as well.

Would the block deck need to be level so to test the entire circumference?

It's just to get an idea of ring seal while your doing other stuff.
If you get one that disappears quickly, it's near impossible to do them all at once, so rotate and refill, just noting as you go by.
Ideally they'll hold fluid evenly for a good long while.
If one or 2 disappear, the rest holding, there a good bet it has a broken ring or similar, and let customer know to make a decision.
Nothing worse than doing valve grind, ( which is common at 60k+ miles ) just to put head back on and have it smoke .
It's better to be able to fore-warn with a reason, than look a fool making excuses afterwards.
It was just a habit that proved worthwhile many times over, and often was a broken ring.
Spark plugs should have forwarned anyway.
Mentor taught me that, by the way , I pass that to you .
Thnx Ed, for many things .