Locked Low Unlocked Low
Locked High Unlocked High
You ALWAYS want it in unlocked high for driving on pavement that is grippy, and when not towing. Low for towing or up/down steep hills with grip
The only difference with locked is that you use it when you will be getting wheel slip over the surfaces you are driving on.
Ok, first off, your Land Rover is PERMANENT four wheel drive, with open differentials front, center, and rear. We can engage a permanently locking center differential (that is what you are referring to as the 4x4 shifter). This forces 50/50 split of engine power front and rear--note, you can still get stuck if both wheels on your front and both wheels on your rear axle get no traction.
What I do to shift to low range is to drive forward...at less than 5 MPH, then put your MAIN gear selector into Neutral, then you can move your CDL selector 'up/forward' to the Low position, then put the main gearbox back into Drive. You CAN go from low unlocked to low locked at any speed, and high unlocked to high locked at any speed, and vice versa (as long as you are in a straight line and all the wheels are turning at the same speed), but I do not like to do this much, so I keep rolling forward at less than 5mph for any and all CDL changes I make. Hope that helps out a little bit, and remember you are locking the center differential, not engaging '4x4 mode' lol its a pet peeve of mine....
*secondary note, who owned this truck before you? Did they EVER engage a locked center differential? Disco 1's have a bad habit of 'freezing' up if not used, or engaged once a week really....
http://home.twcny.rr.com/eeibooks/rover/discodifflock.htm i hope that is not your case, because i hear it is not a very fun task whatsoever
*also, the gate is an H pattern, just incase you are a little confused. With it back in high unlocked you should not be able to move it side to side, you have to put the CDL into neutral before that, just clarifying that
*also, when you put the CDL into neutral, do you get a buzzer/warning sound from the vehicle? You should. If you dont, i wonder if your CDL solenoid is working correctly--...