As a follow-up, after running some tests, as far as I can tell the OverlapThreshold value is not passed on in any way to the resulting block location set and subsequent box label datastore; meaning that as far as I can tell it's a pointless feature that doesn't actually do what it's supposed to.
For example, even if set the OverlapThreshold to 1--which is supposed to result in discarding any and all bounding boxes that overlap block boundaries rather than cropping them--when I create a box label datastore with the resulting block location set, the box label datastore still contains cropped bounding boxes even though it is expected to contain only whole bounding boxes.
So either it's an impotent feature, or I'm somehow not utilizing it correctly.