Happy new year

Ive Used this shock on my bike for ages but a couple of threads have made me question if I understand the settings correctly.

The 1-3 pro pedal settings – are they adjusting the amount of damping when the pro pedal lever is On
Or adjusting the amount of damping when the lever is off and the shock is more active?

I thought it was the former and will experiment next ride but just checking here first.
Ta

When the lever is on then the pro pedal is activated, adjusting the damping from 1 softest to 3 firmest setting, not quite locked out.