as the others said, OD stands for overdrive, but what they didn't say is the button turns it off, not on. It's enabled by default.
Your car has a 4 speed automatic, 4th being the overdrive gear. When you put it in "OD off" mode, it won't ever go into 4th gear, it'll just stay in 1-3.
The times you might use this are: if you're on a winding road and the transmission is constantly shifting up to 4th when you let off, down to 3rd when you hit the gas - that gets annoying and is tough on the transmission. Also up hills when the car is doing the same thing. Lastly - down long hills, you can turn the OD off so you don't have to ride the brakes as much.
Most of the time, just use regular drive (with OD enabled), but this button does come in handy sometimes in the scenarios I described.
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