It was the cheapest way to implement control of an extra gear, when most cars had only 3 positions available on the shifter for the forward gears.
These positions were used to limit the car to 1st gear (L), 1st and 2nd (2) and all gears (D).
When 4 speed transmissions came about it would’ve involved extra cost to add a 4th point to the gear selector, so a button was often used in place.
This button (as explained in other replies) then allowed the trans to access all the gears, or only the first 3.
Now there are common trans with 5-10 speeds, so we have the +/- gear select buttons, paddles, or ‘manual’ shifter positions, to avoid heaps of buttons and gear stick positions.
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