The Hess chart is used to diagnose strabismus and monitor patients with incomitant strabismus. It involves presenting red lights in different gaze positions while the patient uses red-green glasses and a pointer to indicate if the lights are aligned. Deviations between the plotted points and template indicate the angle of deviation and can identify paretic or overacting muscles. The Hess chart helps locate muscles affected by palsies or contractures and determine if strabismus is due to a primary palsy or secondary involvement of other muscles.