I had a dash mounted led light wired so it would turn on when the transfer pump would run. It would first come on about 2/3 tank and run for 5 minutes and then go off. Its time on cycles were between 2/3 and down to 1/2 tank. You never saw the gauge do anything except continue to drop in the normal 8.1L manner. My rear tank is 11 gallons, front is 26, total of 37. This method is used on all of the two tank Suburbans, Yukon, and medium duty 3500-5500 series trucks.
I studied this in preparation for my transition from the 8.1L to a LBZ Duramax in my 2003 2500 Suburban.
And the system will set a code if the sending units don't report readings properly.