I found this explanation.....
This switch is also known as Narrow-Wide range switch and it is used to adjust the input voltage range for which power inverter will work on line mode (external power) and then switch to backup mode. For example, you have got a power inverter that has got ‘narrow range’ of 170 V to 250 V, it won’t switch over to batteries backup if voltage is higher than 170 V and lower than 250 V. On the other hands, if ‘wide range’ is selected which is supposedly designed for 110 V to 260 V, the power inverter will not switch to backup mode as long as external power is available and voltage is higher than 110 V and lower than 260 V. Such switch is useful when you use electric generator or you have got issues with stability of main electricity supply voltage. Make sure you choose narrow mode while connecting sensitive electronic appliances like computers, TVs etc as narrow mode reduces the switch over time from external power source to batteries backup.