I went out to the TM and got my "RV Electrical Systems" book by Bill and Jan Moeller. Under the topic "battery safety & maintenance" they talk about how to fill a battery. They discuss not having your face right above the battery to check to the level because the sulfuric acid might get into your eyes and cause blindness and suggest using a mirror.
They say to never let the electrolyte (water) to get below the top of the plates. If you can't see the plates, then the water is probably covering them. The plates run vertically through the battery, so if the level was low and the plates were visible, you would see the tops of several plates right next to each other. In the batteries that I've seen (which would be a few of our car batteries) with a low-electrolyte level, the plates appear somewhat "corrugated", like cardboard. They say that "the cell should be filled just to the level of the ridge, or bull's eye, around the bottom of the fill-pipe tube. Too much water does not allow space for gassing to occur, and ...the electrolyte may boil out of the cell."
So, to me, it doesn't sound like overfilling will damage your batteries, but it's best to leave some room at the top. I'm not sure what they mean by the above sentence and reference to "bull's eye". I'd just add a bit at a time and make sure that there was some room at the top. The book recommends using a small paper cup and crushing it sideways so that it makes a spout for pouring.
I've always wondered about this myself; sometimes I get a little generous with the distilled water and worry that I've done something wrong
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