Oxygen:
Measured in percent, is actually excess oxygen left over from the combustion process. If this reading is very low, then you will also experience high CO. In boilers and other equipment, we avoid high readings as that indicates excess air which reduces heating efficiency. In automobiles, we usually are looking for about 18%. Normal atmosphere is 21%. This is controlled in late model vehicles by the Oxygen Sensor circuit. The O2 sensor actually measures the Difference in O2 content of the atmosphere and the exhaust. When the atmosphere has more O2 than the exhaust, a small positive voltage is generated.
The Vehicle Computer (ECM), senses this signal and then adjusts the mixture accordingly. You can measure the fuel mixture of an O2 sensor equipped vehicle with a Digital Multimeter (DMM). If the mixture control system is working properly, you should see the signal fluctuate from .1 to .7 volts. This voltage correlates closely (not by design, just luck) with the actual CO percent (Example: .5 volt is approximately .5% CO). This is great news as we could install a universal O2 sensor in any car and use a DMM to set the mixture. If you wish to do this, ensure that you mount the sensor in a "hot " area of the exhaust as it has to be heated to 600 degrees F in order to function. This is why many cars included 86 and later Vanagons use a three wire sensor. The three wire sensor actual has a heating element built in to preheat the sensor. This enables the sensor to go on-line on a cold engine much sooner and keeps weather and driving conditions from effecting the sensor. I find that earlier Vanagons often have problems with sensor performance as the sensor is mounted far enough down stream in the exhaust that they don't get adequately heated during cold weather or when the engine is idling. This also creates havoc with emissions tests as vehicles are often tested without being thoroughly warmed up (car must be driven to properly warm up all emission equipment, especially the Cat).