you wont damage the shock body.
you make sure the upper most ring is tight against the lower top ring (locked together)
you then loosen the bottom ring then you put your c spanner on the top ring to go down or the lower top ring to go up.
the whole body of the shock should turn when you rotate one of the rings. when you are done tighten the bottom ring hard against the lower mount
You should never move the top ring when its not locked as this will adjust the preload on the springs (unless this is what you are trying to do) as this can cause differences in spring force side to side and can potentially lead to premature wearing out of the shocks.
hope that makes sense
just a side note, when you install the shocks you should tighten the spring pearch till it contacts the bottom of the shock then go aproximatly 1 turn more to put slight tension on the spring and to stop it from moving. you should also measure the distance from the pearch to the tophat to make sure the shock on the other side has the same measurement (ie same preload).
then using a ruler make sure the gap between the upper and lower rings is the same on each side of the vehicle.
1mm of adjustment = 1mm lower the car will sit.
How to adjust BC Coilovers correctly - YouTube
that one is pretty good