Callouts 3 and 6 are oil drain ports. Callouts 2 and 5 are sight glasses.
Way oil is to be applied on sliding components via the labeled oil can. Any excess should be cleaned up. All that is required is a thin film to slide on, excess can catch chips and dust, causing abrasive buildup and excess wear.
Grease is applied via a grease pen included with the lathe. The grease pen has a plunger that is depressed to dispense grease into the grease fittings. The grease fittings have a mating taper and spring-loaded ball valve to retain the grease. It is important to ensure the grease pen and grease fitting mate properly to inject grease. If improperly aligned, grease will spill out. Be sure to clean up excess grease.
Please do not replace the oil in the headstock or gearbox without a steward's explicit permission.