There are potentially two different things we are taking about.
1. What was done at the engine assembly plant. The yellow markings on the block (such as 302) were put there to help the workers know which rotating assembly to install in the block. There were markings on the heads too, probably to help determine which heads to put on the block. The 302s got the heads with 2.02/1.60 valves. Whether this was done with grease pencil or a paint pen, I don’t know. But these markings were painted over.
Jerry has seen many original cars and I quoted what he said above.
2. What was done at the vehicle assembly plant. Could some engines have gotten a code written on the head with a grease pencil? Possibly, but it’s not the norm. By 69, big blocks had an broadcast code sticker on the valve cover. I can’t say for small blocks. Flint and Tonawanda might have had different policies.
Try an experiment. Grease pencil a marking on the head of a freshly painted engine and see how long it lasts. I don’t think it was done that way, but give it a try. Probably won’t last through many heat cycles on the front of a head.
It’s graffiti. Like some restored cars with grease pencil markings for paint code on the firewall. Cars got them, but they were covered over by the firewall blackout paint. Grease pencil markings behind the rear seat generally survived, for obvious reasons.