The answers already here are very good. One thing that hasn't yet been mentioned is that the "radius" used in the definition of Gamma is the equatorial radius of the earth.
I'm going to quote from a book rather than the web -- "Fifty Year Canon of Solar Eclipses: 1986-2035", by Fred Espenak (NASA Reference Publication 1178 Revised). Fred Espenak is one of the foremost experts on eclipses.
"Column 7 lists the value of Gamma, which is defined as the minimum distance of the shadow cone axis from the center of the Earth in units of equatorial radii. This corresponds to the instant of greatest eclipse. The sign of Gamma indicates whether the shadow cone axis passes north (+) or south (-) of the Earth's center."
(In this answer, I'll use the term "central eclipse" to refer to a solar eclipse that is total or annular, although this usage is a bit imprecise.)
As the sun shines on the moon, it casts a shadow into space. This shadow consists of the umbra (complete shadow) and penumbra (partial shadow). The umbra is shaped like a cone. The central axis of this cone is what is referred to above ("shadow cone axis"). This axis is along the line that passes through the sun and moon.
This sun-moon line can be extended infinitely through space. Gamma expresses how close the line comes to the center of the earth. A value of 0 means that the axis passes through the center of the earth, and 1 means that it roughly grazes the edge of the earth. (I say "roughly" because the earth is not exactly spherical. Gamma is defined in terms of the equatorial radius, while the polar radius is a bit smaller.)
Roughly speaking, you'll get a central eclipse if the absolute value of Gamma is less than 1, and you won't if it's greater.
Now I'll get to your specific questions.
1) See above.
2) Gamma could certainly be very close to zero. It's probably never exactly zero, because that would require a perfect sun-moon-earth alignment. (The probability of the centers of three astronomical bodies lining up exactly is infinitesimal, but a near alignment is possible.)
3) If the earth were spherical, a value of 1 would mean that the sun-moon axis exactly grazes the edge of the earth (north of the equator) at the instant of maximum eclipse. Because Gamma is defined at the moment of maximum eclipse, a value near 1 (or -1) applies to an eclipse that is seen only in or near the polar regions. For instance, there is an annular eclipse on 29 April 2014 with Gamma= -1.00020. This is visible only near Antarctica and southern Australia. On 31 May 2003 there was an annular eclipse with Gamma= +0.9959. This was visible only in the upper northern latitudes.
Roughly speaking, you get a central eclipse (annular or total) if the absolute value of gamma is less than 1 and a non-central eclipse (partial) if it is greater than 1; but the dividing point is not exactly 1. As I just mentioned, a value of -1.00020 yielded an annular eclipse. There are two reasons that 1 is not the exact dividing point. First, the earth is not exactly spherical. Second, because the sun and moon usually have slightly different angular diameters, you don't have to be exactly on the sun-moon line to see a central eclipse.
4) For extreme values of Gamma during eclipses, see the additional information to my answer below. In principle, you could calculate Gamma at any time, without regard for eclipses. At first- or third-quarter moon, the value of Gamma is roughly plus or minus 59.5 (=238000 miles/4000 miles).
In fact, a quick-and-dirty method of eclipse-predicting would be to write a program that calculates Gamma as a function of time. An eclipse occurs whenever the absolute value of Gamma gets relatively small.
5) No. Gamma indicates where the sun-moon line lies relative to the earth.
Regarding #5: Every eclipse season (nearly 6 months apart) alternates between the moon being at the ascending or descending node for solar eclipses. Consider the following two eclipses:
25 Feb 1971 Gamma = 1.1187
22 Jul 1971 Gamma = 1.5128
These eclipses occurred in successive eclipse seasons, but both had positive values of Gamma. The sign of Gamma is independent of whether the moon is at the ascending or descending node.
On the other hand, if two solar eclipses occur in the same eclipse season, they will have opposite signs of Gamma, because one occurs well before the moon passes the node, and the other occurs well after. For instance, this happens in 2018 (July 13 and August 11).
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Here are some extreme values of Gamma:
annular eclipse: Gamma=1.0242 in year 2485
partial eclipse: Gamma=1.5706 in year 2893
The theoretical extremes are close to 1.0260 (central) and 1.5729 (partial).