My understanding from the white papers is that error tolerance is related to the maximum head elevation.
For instance, If your max head elevations are 2 m (a.s.l.), and you specify a error tolerance of 0.001, then the change in the norm you are using is 0.001 x 2 m = 0,002 m.
This changes if your max head elevations are 2000 m.a.s.l (0.001 x 2000 = 2 m)