I thought I'd add my $.02 to clarify some of the nomenclature because while it appears you guys are on the right path there are some misunderstandings about how the riflescope works.
The sighting system as we're referencing it here is the scope base (0 or 20 MOA), scope rings, and riflescope. Inside the riflescope moving from the front to the rear is the objective lens assembly, field lens/parallax lens, turret globe where the turrets contact the erector, the erector assembly, and the ocular lens assembly. There's a lot more going on inside but those are the basics.
When the optic is mounted on a 0 MOA base the scope's main tube and bore centerline are parallel. Internally, the erector is adjusted so that there is an intersection point at the rifle's zero distance and it is angled slightly inside the scope's main tube. What the reticle actually sees inside the scope is upside down compared to what the shooter sees, the ocular flips it for us, so when you're dialing in elevation and it appears that the reticle is moving down, internally the erector is rising towards the elevation turret.
In the 0 MOA scope base scenario, because the bullet starts falling as soon as it leaves the barrel, it hits low on the target and the barrel needs to be elevated. Dialing in elevation, pushes the reticle down to where the impacts are as we see it but raises the erector internally above mechanical center, which reduces the overall amount of elevation available after getting zeroed.
In the 20 MOA scope base scenario, the scope and bore centerline are no longer parallel with each other. If you pointed the crosshairs at the target and then looked through the bore, the bore would be significantly higher than what the reticle is pointed at. This means the elevation needs to be dialed down to raise the reticle up to where the bore is pointed at while internally the erector is being pushed down, below the scope's mechanical center. This is what adds to the available internal adjustment range of the scope, allowing the shooter to dial out farther over an optic mounted on a 0 MOA base.
As the amount of cant is increased, it's pushing the erector farther down inside the optic, increasing the amount of room available for it to travel up. Keep in mind that the total distance that the erector is moving is really only a fraction of an inch. I'm going off of memory from way back when but the S&B PMII 5-25 erector moved maybe 1/8" or so inside the tube for its total adjustment range, not a whole lot.
Depending on the optic though, too much cant in the scope base means that the erector will bottom out or the turrets won't have enough travel to allow the scope to get zeroed at 100 yards, or whatever the desired zero distance is. The typical complaint will be something like "I'm running a 40 MOA base but I'm still 3" high and can't dial down anymore". In that situation the shooter needs to get a different scope base with less cant or a scope with more internal adjustment.
Hope that helps