My experience:
1/2" - Good for Biological filtration, Sand bed critters, Pods larvae.
1" - More sand bed critters, no improvement on filtration
2.5" - Starting point for denitrification. This varies with the size of the sand grains. Finer = shallower. The area under rocks can also denitrify due to low oxygen levels (anoxic).
8"+ - Starting point for Sulfur elimination. This requires anaerobic (no oxygen) areas. This can also happen under rock if the rock is large enough.