Signed Distance measures the minimum distance between two objects while also indicating which side of the reference surface the measured points lie on. As a result, Signed Distance always operates on two objects: a reference object and a measured object. To start working with it, go to the Inspect tab and click Signed Distance.

Once you click it, a dedicated panel will open. Unlike standard distance measurements, Signed Distance assigns a sign to each distance value:
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Positive values indicate points located outside the reference object
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Negative values indicate points located inside the reference object
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Zero indicates direct contact or intersection.

Benchmark
The Benchmark section reports performance metrics for the signed distance computation:
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Smart search time is the time spent on the optimized distance search
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Full search time is the time required for the exhaustive distance computation
These values help assess performance when working with complex meshes or large assemblies.
The Signed Distance Tool Explained