Stat Scaling in Code Vein indicates the degree to which your stats affect and scale with your equipment. The higher the degree, the greater the scaling.
Stat Scaling Information
Stat that Scaling Notes
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So, it turns out scaling above S+ does affect your stats. I tested out a build in which I compared the damage of S+ strength + Somatic Zeal(buffs strength and dex) to S strength + Somatic Zeal. So on paper they should do the same right, since they are both S+ and it doesn't actually go above S+ in the stats window. Nope, the build with an invisible SS strength actually did more dmg. So while going above S+ won't show S++ or SS it actually will affect your dmg. Feel free to test it yourself just incase I missed a variable. (Dark Knight. Passives: Strength Up, Strength Dex Up, Strength Vit Up for S+ strength. Remove Strength Up for S strength. Weapon doesn't matter just use same weapon for comparing.)
Doing some experimenting, I found that Mind and Willpower scaling on weapons doesn't work like you'd expect. Mind and Willpower scaling only affect the *magical* attacks from a weapon, which is usually only the charge attack (or the shooting attack for bayonets).
So, if I understand this correctly, the higher your level = the greater damage your weapon does? So why would anyone want to use IO's blood to enhance their weapon and remove stat scaling? Unless you want to challenge the game by playing at levels 20 and below.