Welcome Brian, ill try to do the best i can,I had a mystery switch in my 96,but not in the 2000.
1. The switch is installed by tapping the ground wire that completes the circuit and energizes the lockup clutch in the torque convertor. You add a jumper wire in the relay box to keep the positive side fed at all times with power,this ensures it stays locked as long as the switch is on.
2. The purpose can be for better acceleration with a stock TC,especially in OD,or enginebraking with or without an engine brake,it helps slow you down.
3. You should not use a switch at all,in most cases you will do more damage than good with a mystery switch,the true fix is an aftermarket TC from a reputable company,this is the permanent fix. If your using it for engine braking,it should be hooked to a controller,I know DTT,and BD both make them,Im sure there are others.
4. Drawbacks to mystery switch,are they shorten transmission life,especially the TC. They also prevent proper downshifting of the transmission while engaged. If you forget its on,and come to a stop,you will literally stall the truck,much like stopping with a manula transmission without pushing in the clutch,the switch tends to be used as a way to get more power tothe ground,which it wasnt built to do at high pwoer levels,or low rpms,this ttends to slip the TC clutch,and load the transmission pan with filings,I know i did it myself.