If you have a LONG travel indicator, you do it without the heads on and a lifter in the bore. Set indicator dial to 0.000" with the lobe 180° away from the lifter. You are just looking for the first movement of the indicator, jot down the degree wheel number (bolt a piece of wire on the block to use as a pointer), then spin til it hits the same number (which should stay steady). If it doesn't come back to the same indicator 0.000", reposition indicator and try again. Get the same # 3 times, and you have your "zero lash, zero lift" number.
In practical reality, there are mfr variations, so allow the indicator to get to say ±.002" to be considered zero.