It absolutely is for eye candy. Now, for some applications, like racing, heavy equipment etc. it’s a good visual confirmation for the operator that the gauges are working, but it is not any sort of calibration or anything like that. Could be also a “self test” but you highly doubt a simple gauge circuit has needle limit sensors.
Calibration values are permanently stored and only need redone when components are replaced and that is a separate procedure not baked into normal operation.
Edit:
Just occurred to me that the servo itself could report its position back to the controller, so it can test itself without needing other sensors, but that is not calibration.
Calibration is something totally different and requires a known good value to compare to, therefore a servo cannot calibrate itself.