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When the relay is "ON" (as happens automatically when the engine is turned on)...
• The normally open points are closed, sending voltage to the OD solenoid.
and
• The normally closed points are open, removing a ground from the "hot wired" light, keeping it off.
If the relay is "toggled" OFF by the shifter switch, the conditions above are reversed, disengaging the OD and turning the light ON.
Subsequent switch operations will toggle the relay between the ON and OFF states.
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Bruce Young '93 940-NA (current), 240s (one V8), 140s, 122s, since '63.
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