Currently, the diamond moderator tools have short explanation about what those tools do exactly. But they don't have much information about when and why we should use those tools.
What I think should be present in all of the major tools is a link to a post that explains when I should use that tool. This post could showcase the most important use cases and go into some detail of the finer points that might not be immediately obvious.
I know that all this knowledge exists somewhere, but not exactly in a place where a new moderator would immediately find it. A lot is covered in the information new moderators are linked when they are elected/appointed, but they might not remember to look there if they encounter a specific situation later.
The documentation should be directly accessible at the point where we actually try to use those tools.