If you push the tool tip in against the diameter of the work, and then look at it from directly above, the clearance angle is the angle that the front edge of the tool makes with respect to the work or to the spindle center line.
Actually this top view on the front is the tool lead angle.
Clearance angle is the side or flanks of the cutting tool so in a zero by zero rake holder a 11 has 4 more degrees than a 7. Often called heel clearance.
What counts here is "effective clearance". A 11 degree insert in a 4x4 positive pocket is the same as a 7 in 0x0.
Also feed per rev decreases the front effective clearance which is why threaders need more rake on the leading side. The cut material is "coming at you" decreasing the clearance.
The same is true in milling. Effective clearance is clearance not just as mounted in the holder but in the cut.
Differing materials (and diameters) need different heel clearance angles.
Very generally speaking softer materials need more angle.
This is due to the compression that takes during shearing. The material "springs back" after shearing trying to rub on the flank of the tool as it relaxes. "Softer" stock tends to compress and release more.
For this reason aluminum cutting needs more (another 2 to 4 degrees) and plastics even much more angle here. This is one thing in aluminum cutting that can't be fixed with high rake chipbreakers in a steel cutting designed holder or milling cutter.
Larger dias also need more as the part does not "fall away" from the cutting tool as fast.
In the same material a higher side rake inserts allows you to tip the insert in the holder (or go above center) making the top more positive cutting.
Certainly higher is weaker in breakage strength so you don't want more clear than needed to prevent flank contact or wear.
Before others jump on me with real world experience I should add that high positive top rakes do remove some (or a lot of) compression force allowing you to get away with less heel clear as the spring back is reduced.
Do not confuse flank wear here, this is flank contact in the first cuts of a tool while the top cutting edge is in perfect condition and not worn.
Too little effective is bad and rubs, too much effective is bad and leads to early breakdown of the edge which then looks like flank wear.
It is all so
.
Try it and run with what works for you. The proof is in the pudding.
Bob