Is this an old lathe with the motor behind the headstock and visible which is known as the ‘model A’? If it has the motor in the cabinet underneath it is an AUD.
If you have the lever on the front style then with the other lever in the ‘normal’ running position the pulley is released from the big gear (bullwheel). Then you can freely rotate the chuck as it is completely disconnected from the drive. Useful for setting up. However in old lathes sometimes the brass dog inside the headstock that moves bullwheel is too worn or broken to disengage it. So check this first. Later lathes put this lever on the top.
Then the lever on the left moving towards the front engages the backgears, if they are not damaged. If you move the side lever like this but not the front lever then the spindle is locked. Do not use this feature to hold the spindle to apply force to undo a stuck chuck or you will break teh gears. That is a very common problem.