When both LEDs are lit, the climate control is in full auto mode. If you change the blower control, one of the lights will go out (while the air distribution/direction will still be in auto). If you change the air distribution (say to the floor) it will go to manual mode and both lights will be out. You end up with three options:
1. Full auto (two lights lit)
2. Blower auto, with distribution manual (one light lit)
3. Distribution auto, with blower manual (one light lit)
-Rich