Locking out a gear is simply turning off overdrive or moving the lever to a lower gear. In that situation, the higher gear ratios are locked out. With tow/haul mode, the transmission will generally handle things just fine.
But if you are going up and down short steep hills, the transmission will sometimes hunt for the correct gear bouncing back and forth frequently. If it happens occasionally it's not a big deal. If it's shifting every 30seconds, it's hard on the transmission. A simple solution is just to lock out the higher gear and run in the lower gear at slightly higher engine RPM.
Locking torque converters have been around for quite a while. A torque converter is basically a hydrallic pump that allows slippage. The slippage allows you to leave the vehicle in gear while stopped. The problem is that slippage doesn't stop while traveling down the road and it wastes energy. The solution is basically a clutch that locks the two halves of the torque converter together so there is no slippage. When at a stop light, the clutch releases and the torque converter operates as normal with slippage. Once up to speed, the clutch locks up and eliminates the slippage.
Early versions only locked the torque converter in overdrive. More recent ones can lock additional gears. An easy way to check if you are locked is to let off the gas or punch it for a second. If the RPM hold steady or gradually change with the speed, it's locked (there's no slippage so the RPM and speed are locked together). If the RPM jumps up or down quickly (much more so than the speed), it's unlocked and you are seeing the impact of slippage.
There can be a side benefit for towing if the tranmission locks in lower gears. When unlocked under heavy load, that slippage creates lots of fluid friction and heat. This can overheat the transmission. If you can hold a steady speed in a gear that is locked (without lugging the engine), there is no slippage so the transmission fluid doesn't overheat. This is why you don't hear about manual transmissions overheating.
Tammy & Mike
Ford F250 V10
2021 Gray Wolf
Gemini Catamaran 34'
Full Time spliting time between boat and RV