if you loosen it too much, the nut may start to press against the body of the guitar. Other than that, loosening it can't really damage it.
Tightening it too much could potentially damage the neck, snap the truss rod, etc. I never turn the truss rod more than 1/8 of a turn when tightening it.
2007 Stingray 5 HS Cherry Burst / Maple FB / 3 Band EQ / Ceramic Pickups
2012 Stingray 5 H Pearl Blue / Rosewood FB / 3 Band EQ/ AlNiCo Pickup
2012 Steve Morse Morse Blueburst / Rosewood FB
2012 Luke III SSH Vintage Sunburst / Rosewood Neck
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