From transengineer
P0740 is Torque Converter Clutch (TCC) Out of Range, which means that when your TCM commanded the TCC to fully engage (lockup), it was unable to pull the engine speed down to turbine speed. If it fails three times in a row, it sets this fault.
This fault simply disables the TCC. You can continue to drive the truck without much problem, as long as you're aware of one critical point: Lack of TCC engagement will negatively impact trans cooling. You will be generating extra heat in the converter all the time (instead of only at slow speeds, as in normal operation). You can overheat the trans if you drive for an extended period, especially with a trailer. So I would NOT advise any trailer towing until you get it fixed. Short trips are OK, but no cross-country treks without some stops to cool off.
The problem (causing P0740) can be in a number of areas: internal converter failure, stuck TCC control valve (in the rear half of the pump), bad control solenoid, bad wire or wiring connection, etc. Typically, if the solenoid is bad (or the wiring) you will also set other faults, so if P0740 is all you've got, then my first bet would be internal converter, or sticky valve in pump. For the repair you typically pull the trans, pull the pump, and inspect the valves. If valves are stuck, clean 'em. If still bad, replace pump assy. If valves are all OK, replace converter.
You might want to first take a ride with a dealer tech (with a scan tool) after clearing the fault, to see what happens when the TCM first commands TCC engagement. Does it try to lockup but can't quite pull it down far enough? Or do you get no response at all? Sometimes that will help to diagnose the root cause.