As Ruby 50 said. Press each string down between 2nd and third frets. Lightly tap the string over the first fret. On the low e, a and d you are listening and looking for the slightest gap. G b and high e should just be touching the first fret. To visualize this capo the first fret. Now observe the strings passing over the second fret. How much gap do you see? The strings coming off the nut should be at a height that is the same as any other fret with the fret behind it capoed.
All this providing proper fretwork, neck bow, saddle height. Think of the string height of the nut as a zero fret.
Good set up is nut height, saddle height, good fret work.
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