The reason it's positioned after "Drive" on the selector is simply a matter of how the transmission and the shifter are designed. When you select "Drive," the transmission automatically shifts through all the lower gears as needed. Selecting "Overdrive" then adds that higher, fuel-efficient gear to the mix. It's an on/off switch for the highest gear, not a separate sequential gear selection. If you turn Overdrive *off*, the transmission will only use the lower three gears. This can be helpful for engine braking on hills or for increased power during passing.