The yellow 7 liter light on my '85 k100 likes to light up as I roll out of the gas station, I guess to remind me that I will be buying gas again in the future! I think it is more likely to light up prematurely in hot weather.
The red light is more useful, when it lights up a fuel stop really is in my near future. It's sensitive to the gas sloshing around, so when it stays on even after hard-ish braking, I know I really need to thinking about getting gas.
What I rely on most is my trip odo, which is a new replacement unit bought from Max BMW. Nearly $100 but worth it to me. Not difficult to install if you take your time and study how the instrument cluster is put together.
As others have said elsewhere, it's not good practice to run the tank super low, because the fuel filter is lubricated by the gas it's immersed in.