I might think that it's a focus limiter switch. If so, what it does is limit the range at which the lens will try to focus. For example, if you are trying to focus on something very close, 'macro'...you certainly won't need to use the same focus setting as if you were focused on something 40 feet away. Often, the way a lens works when auto focusing, it will 'hunt' and go back and forth until it finds the focus....if the lens had to go all the way to the end of it's focus range, and back again...it would take longer to focus. So by limiting the focus range, you can improve the speed at which it focuses.
I'm not sure which lens of the range is limited on that range. I'm sure it's in the manual of the lens, if you have it.