A balancing loop returns an effect that opposes the change you started with. In a simple heating controller, a temperature below the setting creates a gap, the controller calls for heat, and warming reduces that gap.
This is a simplified model, not instructions for adjusting a particular heating system. Actual controls have thresholds, delays and capacity limits.
“Negative feedback” means an opposing effect around the loop. It does not mean criticism, harm or a guarantee that the system settles neatly.