How does d1 and d2 and d3, d4 gears work in an automatic car?

There's Park and Reverse, and Neutral Drive and then there's D1 and D2 and D3 and D4 and L.

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D1, D2, D3, and D4 work the same as Drive, except the number is the highest gear the transmission will shift into for each respective setting. D1 will not shift out of first gear, D2 will shift from first to second only, and so-on. These usually exist for towing situations, but there may be other reasons for them as well.