I've not been very good at articulating how it functions, mostly because I wasn't entirely correct until made so recently on another forum!
Operation in Auto is best explained here:
Gears Magazine - Magna's MP 3010 Transfer Case
The Magna Powertrain model 3010 (MP 3010) transfer case (figure 1) has been the heart of GM’s four-wheel drive truck line since it was introduced in 2011 to replace the New Venture Gear transfer case system. The MP 3010 transfer case is an electronically controlled, one-speed automatic, active...gearsmagazine.com
The MP3010 is the single speed version of the MP3023/MP3024 and for our discussion works the same.
interesting. mine has a 4low as well. and the manual says it can be shifted into a tow behind a rv mode, basically a neutral. I will have to look into which number I have. like you say, probably works the same way. just 2 gear ratios for low and high,