The thing to look for in the histogram is saturation at either the
white or black grayscale levels. For example, say you take a
picture of a white flower against a dark, shadowy background. The
camera's auto-exposure system might make the white flower a pure
white blob, losing all the subtle shades of white in the flower.
This would be evident as a a sharp spike at the far right end of
the histogram. The histogram will actually be truncated at the
right side. In this example, a little negative exposure
compensation would shift the histogram to the left, assigning more
grayscale levels to those previously-truncated near-white values,
and allowing you to actually capture the subtle shades of white in
the flower.
In general the goal is to use in-camera adjustments like exposure
compensation to spread out the histogram across the available range
of grayscale values without truncating either end of the curve.
But for most of the pictures I take, truncation at the right side
(white) is more likely to result in a disappointing photo.
....Wolf