Paul, I believe that technically speaking "Headroom" refers to the difference between the signal power that an amp will produce
on average, and the
maximum signal that that same amp can produce.
So to put it more simply, headroom is the amount of "room" you have to play with before your signal breaks up into distortion.
I often hear people using the term fairly interchangeably, as in Bass Headroom, Clean Headroom, etc, where Bass Headroom is meant as the amount of low-end the amp can handle without breaking up...
Some guitar tube amps are very difficult to push into overdrive due to the volume required, and in these cases adjustments can be made to
reduce the headroom [my old Fender Deluxe Reverb was like this]--likewise, other amps begin to break up at very low volume, and there are at least a few options for adjusting the headroom
upwards as well.
I hope that makes some sense... and I hope I haven't totally mangled the concept of headroom--I'm definitely no expert on the inner workings of guitar amps.
