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From the BlueOvalForum user
Now, I was not honestly familiar with what a transfer case lock was. So I did some reading... sounds like the basic gist of it is that a jeep/most other vehicles the transfer case is locked by default. Meaning just like how with diff locker the left and right tire move at the same speed... a locked transfer case means the front axle/IFS(que the damn chairs lol) and the rear axle have to move at the exact same speed. Hence the jumpiness that I'm sure you've felt if you've ever tried to drive in 4x4 on a high-traction surface. By unlocking the transfer case, this allows the axles to receive different amounts of power, so you could be in 4x4 even on paved surfaces.
Sounds pretty fucking cool to me!! Now this is all speculation we can't see it well enough to be sure that's what it is... but odds are pretty decent IMO.
Edit: I’d assume it’s similar to how Mitsubishi’s system works;
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but I can see how they will govern it because the average joe is an idiot, but I would like to be able to control what gets locked and when. I am sure that you will have to lock the transfer case before you can lock the rear diff because of the ill handling that comes from having the rear diff locked in just 2WD but DAMN IT sometimes I want that. needs to be an override switch or something so I can do what I want.