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The arrow indicates that your overdrive is turned off.
You wont damage anything, in fact, from 1975-80, 240s autos didnt have an overdrive, but I think had a different final gear. Anyway... Just keep it around 55mph, your fuel economy will suffer though until you can get it fixed. The first thing to look at is the overdrive relay. It is located to the left of the glovebox. Can you hear it click when you press the button on the shift lever. Relays on 240s tend to get flakey in their old age: the solder gets brittle and the connection becomes intermitant. REmove the glove box.. 7 or 8 screws, pull it out being carefull of the glove box light. You will see the OD relay to your left behind the dash. Give it a smack, does the OD work now?? REmove the relay, pry off the cover and notice all of the cracks in the solder connections. If you or someone in your household is handy with a soldering iron, you can 'reflow' all of the solder joints to the circuit board. Or take it to an electronics shop and have them do it. But dont pay more than $ 10 for that, OR, easist, order a new one. At least it will be eliminated from the equation. If this doesnt solve the problem, it could be a problem in the OD solenoid or associated wiring.
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'82 DL - 151k, '93 945 - 99k
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