What does it do and is it any good? When or why would I use it?
That was the OP's question, hence the answers from those familiar with it.
I can figure out when to use 4 wheel drive. I like the lever on the floor of my truck. mtmuley
Yeah, me too. Back when manual hubs and manually-shifted TCs were the norm. I have no problem adapting to some of the new-fangled chit offered today.
Case in point: Back when dash-mounted buttons began to appear for selecting 4WD, insisted the ol' lady order her new '94 GMC with the manual TC floor shifter, on the premise that it was one less electrical doohickus to ef up.
Didn't do any good. We had a major blizzard here in '96 and when we needed 4WD, had none. The electrical switch that locked the front axle in, took a dump during the blizzard. No manual option for that one, although eventually someone invented a manual cable aftermarket doodad to solve the problem of a bad switch.
Yep, manually-selectable stuff is great. But the OP wanted to know if auto AWD worked and what it was "good fer". It's "good fer" days when parts of the roads are bare, partially snow covered or icy in some stretches. Poke the button and drive. The system figures out when it needs to be engaged and when it doesn't, as
road conditions change.
Just for the hell of it, once pushed the auto button and headed up into a steep, snow covered field in deer season. Truck moved along fairly well, but too much thrashin' to suit me, as it fought with itself as traction came and went. So naturally I just poked the 4WD high button and proceeded without any drama. That's what
that option is for.
A neighbor's first 4WD vehicle was a new Chevy shortbed, '76 IIRC? Manual hubs, floor TC shifter. First snow storm that year, he headed off to the inlaws. Some snow covered roads, mostly bare. Left it in 4W high for the entire trip. Grumbled later that it sucked too much gas, couldn't turn the wheels sharply in a parking lot. Told him he could've just shifted the TC back into 2WD, put it in 4WD if it was needed. He thought that was "too much trouble".
He swapped it on a new Blazer with their then-new version of AWD.