Distance snap enables you to insert the dimension line at a defined distance from the object you are dimensioning.
If distance snap is active, when you drag the dimension to place it in the drawing area, it snaps into position and changes to red, at the pre-defined distance. Configuring distance snaps includes activating the feature and setting the snap distance.
For baseline dimensions, AutoCAD Mechanical toolset maintains a consistent gap between the dimensions. This gap reflects the DIMDLI system variable and not the snap distance.