Here's the way it works (simple explanation): Assuming a healthy cooling system, it will heat up to operating temp, the thermostat will open and coolant will flow thru the radiator. The coolant will expand as it absorbs heat and vent into the overflow bottle. It will stay this way as long as the coolant is warm. Once the coolant cools off it creates a vacuum, the hose from the top of the radiator works in reverse and sucks coolant back into the radiator. This process happens continously.
If you have a leak and depending where it is, coolant can escape while the system is under pressure. If the leak is in a place (like the rubber seal in the thermo housing) where the coolant can escape, but semi-seals under vacuum it will empty your coolant bottle. In other cases, the leak can suck air into the system and the coolant bottle will be over full, but your radiator coolant level will fall...this will produce a higher than normal reading on the coolant guage as the system loses coolant. A bad heater core can leak, but won't suck air into the engine part of the system...this will allow the coolant to suck back into the radiator from the overflow bottle.
If you have a blown head gasket, coolant can be forced under pressure into your oil or a cylinder...neither of these are good. Check to see if your oil level is rising and/or has a milky look to it. If you are getting white smoke out the back that smells like coolant...that's the indication of coolant in the cylinder. Usually what happens is exhaust gas is forced into the coolant system, displacing the coolant...in this case, the overflow bottle will fill to the top and discharge coolant out on the ground...the car will over heat as well.
The problem with our coolant system is any variation of the above will produce symptoms that mimic something else...a real PITA to figure out. Do the simple things first...get your coolant system pressure tested, check condition of hoses, replace the thermostat & rubber seal, check your heater core. If you want piece of mind concerning a BHG, go to NAPA and buy the block test kit...it tests for exhaust gasses on the coolant system.
Good luck