I was intrigued by the function so I had to check in my Shop Manual. Yes indeed, it shows exactly what mgarblik says, see attached section from the American 1966 Shop Manual (max upload size 300 KB, sorry).
However, your heater control doesn't look like the one in the Shop Manual.
Your "Blower" says "Low-Medium-High", whereas the Shop Manual's "Select" says "Normal-Rear-Deice", plus -more importantly- your heater control doesn't seem to have any vacuum lines connected!
Is your picture not showing the whole adjuster? And what are the two levers at the bottom for? Do you possibly have a cable adjuster to adjust where the air flow goes?
/Your Ontario neighbour with a 1966 Bonneville
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