it stands for “overdrive”.
it changes how your car shifts gears (specifically, its stops you shifting into the highest gear range) to make it better in some road conditions. generally any time where you need the higher torque of the lower gears rather than the higher absolute fuel efficiency of the higher gear.
unless you live in a very hilly area, i;d just leave OD on and not worry about it, unless you keep finding the car feels like it “lacks power” going uphill or something, then turn it off.
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