General question about regulators

So, I understand how most pressure regulators works, what I cant figure is why some (most) needs a vent hole. Why they need to be vented?
I just bought a Huma regulator for my BT65, waiting for the shipping, and in the meantime I want to FULLY understand how they work and what could happen if I don't make that venting modification on the pressure tube. 

Thanks!
 
The instructions provided by Huma, specifically for the Hatsan regulator, show two methods for venting the regulator. One is to remove the o-ring and leave a tiny gap between the air reservoir and the original valve The second method is to carve a notch along the valve threads and on the air reservoir with a small file. The first method is totally reversible, which is nice, but I am afraid it could leave the reservoir tube kinda loose.