This should have been covered in drivers ed, but seeing as how they don't teach people how to drive any more I'm not surprised that it was not.
The over drive button controls if the torque converter gets to lock up, stop and go traffic can be rough if it's constantly locking and unlocking, same with rolling hills at 45 to 50mph but for a lot of normal driving you want it to lock up so you have a more direct drive in the transmission.
Using it can also help your transmission to last longer.
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