Hey Jeremiah,
you have to short 2-3 on Jumper J1 for onboard potentiometer and 1-2 on Jumper J1 for externally connected potentiometer. The latter is for use with the MASSO G3 on the Elite Series which will behave like a potentiometer (MASSO G3 does not support Modbus communication over a serial communication).
PD001 “Source of RUN command” (RUN/REV/STOP) must be set to “0” if you want to control the VFD on the onboard keypad, to “1” if you want to control RUN/STOP with an external terminal (this is for use with the MASSO G3 of the Elite Series) and to “2” if you want to control over the Modbus serial communications port (this is for use with the buildbotics-derived Onefinity Controller of the Original/X-50/PRO Series).
PD002 “Source of Operating Frequency” (SPINDLE SPEED) can be set to “0” for control with the onboard keypad, to “1” for control by potentiometer (onboard or external depending on Jumper J1) (this is for use with the MASSO G3 of Elite Series) and to “2” if you want to control SPINDLE SPEED over the Modbus serial communications port (this is for use with the buildbotics-derived Onefinity Controller of the Original/X-50/PRO Series).
For the other settings, see also here.
Unfortunately the Huanyang HY Series VFDs don’t even support Sensorless Vector Control (SVC), only stupid V/f Control. V/f Control can be tweaked with PD005–PD007:
.