Tool setting on a CNC lathe can be completed by the following steps:

1. Preparation: Make sure the CNC lathe and tool holder are clean and free of any debris. Make sure the tool is installed correctly and securely.

2. Zero point setting: Use the CNC lathe operation panel to enter the tool setting mode. Select a suitable zero point position, such as the edge of the workpiece or a predetermined reference point, and set it as the zero point. Make sure that the coordinate system on the lathe is consistent with the coordinate system of the CNC system.

3. Execute the automatic tool setting program: CNC lathes are usually equipped with an automatic tool setting program. Running this program will automatically adjust the Z-axis and X-axis positions of the tool and measure at the set position.

4. Measure tool length: The CNC lathe will automatically move the tool to the preset position and use a sensor or measuring tool to measure the tool length. This value will be automatically saved in the tool offset table of the CNC system.

5. Measure tool diameter: Some CNC lathes can also measure tool diameter to obtain more accurate tool compensation values. Use a measuring tool to measure the tool diameter at a specified location and input this value into the CNC system.

6. Complete tool setting: Based on the measurement results, the CNC system will automatically calculate tool compensation and apply the correction value to the cutting program to achieve accurate processing dimensions.

Please note that the specific tool setting steps and procedures may vary depending on the model and brand of the CNC lathe. Therefore, when operating a CNC lathe, please refer to the relevant user manual and operating guide, or consult a professional for more accurate tool setting methods.