The Nuclei engine sits in a layer's Detection section (Add > Detection > Nuclei). Give it one grayscale image in which nuclei are the bright structures on a dark background, such as a DAPI channel. That is the only kind of image it works with. On a brightfield slide, the "Add IHC 2/3" quick action adds a Color SeparationLoading... and runs Nuclei on its first marker.
The Engines Reference describes what goes in and what comes out, not the segmentation algorithm in between. Nuclei size is a hint, with no unit, that tells the algorithm to detect smaller or larger nuclei. A background threshold, automatic (Otsu's method) or manual, separates nuclear signal from background. The result is a set of events in a coded image, one unique ID per nucleus.
After segmentation, three kinds of correction are available. Remove small-sized objects and Remove weakly stained objects sort all events by area or by mean intensity and drop the stated percentage from the bottom. Remove Labels drops events outside fixed area and intensity limits, and Use Merging Rules joins touching events whose combination meets every condition. Post Processing Order determines whether removing or merging comes first.
With Use Border Input on, the engine adds a border of pixels from neighboring fields of viewLoading..., to preserve the continuity of information across tile edges. Border option sets what fills the border where there is no neighbor.