Originally posted by: Aftermath
OverDrive = any gear ratio smaller than 1:1.
When your transmission shifts into overdrive the input from the engine is slower than the output of the transmission. It's great for highway speeds because it drops the RPM of the engine, and you maintain speed, but you lose power (which isn't necessary when you hit the cruise control on the highway anyway.) You're not supposed to use overdrive when towing anything though, and it's advised against using in town where the tranny will shift in/out of overdrive, so that's why there is an option to turn it off. On other (or maybe older, I haven't driven a new auto in years), on the gear shift you had O (with a D in it) for Overdrive, and just D for your standard gears (keeping the car from shifting into OD.)
I know I know, I'm a few hours late on this thread.