As the engine works at high speed or uphill, head temperature will increase quickly.
An air-cooled engine requires a steady flow of air for cooling.
[1] The CHT sender usually has a K-type thermocouple that is mounted under the spark plug.
The K-type thermocouple is a pair of two dissimilar metals that produce a small voltage signal when heated.
The error can be corrected with a cold-junction compensating thermistor, which measures the temperature at the cold junction so the gauge can adjust the reading.