Too tight can damage bearings.
Headset top cap torque.
I would say 5 n m is safe.
Adding tension to the bolt will pull the threaded star nut which is found wedged inside the steerer tube upwards moving the fork crown race bearing more tightly into the lower headset cup.
Align your handlebar stem and apply the appropriate torque rating to the steerer tube clamp bolts.
Do not overtighten it.
As others have said the top cap is pre load only.
Depending on how loose your headset bearing feels you can make adjustments to the bearing tension with the 5mm allen bolt located in the top cap.
The edc cap kit includes the worlds lightest headset top cap 4 2g and an edc steerer plug with drain hole which keeps crud out of your steerer.
You want the minimum torque to reduce play in the headset.
A torque wrench is a good idea at this point.
Anything you can imagine.
Then tighten stem again.
Welcome to kapz custom bicycle products no production delays business as usual.
Top caps are compatible with all 1 1 8 aluminum steerer tubes.
On to your problem it could be the clicking you hear is because the pre load top cap is a tiny bit loose.
Same is true for the end cap on a shimano hollowtech ii crankset.
Make sure it still turns freely.
Do up the headset top cap until it is just tight at this point you should be unable to turn your stem spacers.
It is non load bearing.
Once the stem is tightened in place is is purely cosmetic and covers the top of the steerer.
The edc steerer plug is required for edc tool storage and is compatible with most aluminum tapered steerer.
You will need to loosen stem then tighten this top cap slightly quarter turn or so.