While a small percentage of damage may get through even the thickest armor, damage threshold can effectively neutralize a lot of small arms.
“ Imagine that there is an amount of damage that armor directly subtracts from damage… a 'threshold' of damage, if you will. In such a case, the player gets a message that an attack dealt 'no damage,' which can be frustratingly common when using weaker weapons against power armor or Wanamingos. Unlike in Fallout: New Vegas, damage can be completely negated by DT. More specifically, after AC is checked for a successful hit and before DR is checked to further reduce the damage, any incoming damage is immediately reduced by DT: DT occupies the 'middle step' for combat and simulates the effect of how tough armor can immediately stop a bullet cold, no matter how many successful shots are fired. The other stats are AC (Armor Class) and DR (Damage Resistance). In the original Fallout games, DT (Damage Threshold) is one of three stats by which a character can reduce or avoid damage.