Platen Gap is "gap between the printhead and the platen". This is written down in Epson Service Manual. That means the distance between the print head and the black support plate surface. It is not the distance between head and paper, but the default setting will change by paper types. If you leave it on standard/auto, it means printer will choose for you according to the paper type you use. See the "Platen Gap Determining Sequence" in attachment. In old days, Epson did not show actual values of platen gap setting. The numbers hided behind narrow, standard, wide, wider, widest. See the attached image 2, which is the PG Settings List in Epson 9900/7900 Service Manual.
Now we can set a specific platen gap value on newer printer models for custom papers. If you do so, that's not about paper thickness. The (platen gap) - (paper thickness) is real distance between head and paper. The platen gap is wider, the distance between head and paper is wider. Because of that, many manuals/user's guide/mechanics said it's head-paper distance just for simplification.