I got a bit confused by the last few posts, but no matter – I've got a lot out of this thread.
I'd assumed that the force to displace the indicator needle was small compared to the weight of the indicator. This appears to be wrong. if I hold the indicator above a scale (kitchen) it doesn't really start to read until the scale shows 100 g and that rises to nearly 200 gms and full displacement. The indicator scale covers 5mm but the actual displacement range is nearer 10.
So the effective downward force could vary by a considerable amount. Obviously, if I'm comparing one height which 10 microns different to another this is not going to matter, but over a couple of mm it's important.
So if I want to compare heights of the order of mm I need a much stiffer mount and base than over microns.
The mount I hand in mind looks like this

What's changed in my thinking is what that attaches to. One thing I want to do is to check the parallelism of my prism. For that I will make a stand that this bolts to and is a decent piece of steel down to a solid base. it will measure relative heights but only one or two centimetres away from an edge.
In the diagram above I can attach to the 6×8 arm of my height gauge or a 10mm round bar from an indicator base. Fine I think for things like clocking a surface plate assuming it is reasonably close to spec.
I need to think about balance though and might need a counter-balance on the other side of the base if I am looking at much more than 10cm.
Iain