Here is an example of 3 spark testers. First off none of these will tell you if the spark plug is bad or not. What they will tell you. First is the inline neon tester. It will tell you if the system is generating energy and is making it to ground somewhere. Just because it flashes doesn't mean the energy jumped the plug gap. A shorted internally or fouled plug can let the tester flash but plug may or may not be working properly. This type tester is especially good at finding failing coils on twin cylinder engines. Install one one each cylinder and if a coil is failing after runnibg for a while this type will show it.
The second one, the Briggs tester has a calibrated gap and is used without a spark plug. It will tell you if you have spark and if it has enough energy to run an engine. This is a good tester to check the basic condition of the system. If the spark can jump the gap it will run the engine.
The third one with adjustable gap can tell you how much relative energy the ignition can put out. None of these will tell you if the timing is off. There is also the 3 point spark test you can do with the adjustable tester but i have never neede to do it. Taking the plug out and laying against the block is NOT a good check of the plug or the ignition system.