You will hear the clearances, especially on the gears, since they are spur gears and will, by now, have some wear.
This, of itself is unlikely to cause major problems, since the torque to drive the lathe will take take up the backlash.
You will only be using the back gear to provide a low speed, so is unlikely to be in operation for much of the time.
Changewheels for screwcutting or automatic feed should be set by running a piece of thin card or thick paper (Say two thicknesses of writing paper ) through each mesh to provide a little backlash. Too much and they will rattle, too little and they will be noisy and wear. Gear oil, SAE 90, will be an ideal lubricant for these.
Having audible clearance in the bearings is more of a problem and needs to be reduced. It cannot, must not, be completely eliminated. For a running clearance you need a thou or so, but with lubrication maintained.
This is a drip feed lubrication with a relatively low rubbing speed. (Highly loaded white metal bearings operating at higher speeds have clearances of 0.002" – 0.004", but are pressure fed )
So if you believe that you have a problem there, your attention needs to be focused on the Mandrel bearings, in terms of radial clearance, and then end float.
HTH
Howard