Head space is the measurement from the bolt face to the datum line on the shoulder of the cartridge.
How accurate is the rifle now and what would you like it to be? If you don't handload that is the place to start. My 721 '06 will shoot about 1.5 MOA, that's the best I've been able to get from it. It's 50 years old with who knows how many rounds through it and probably wasn't always given the best care. It still kills things though which is the important part. I've got another one that will get a completer workover one of these days(trued, new barrel, stock, trigger, etc.). What you do next really depends on what you want from the rifle and how much you would like to spend getting it.