As you have heard that is the water heater bypass valves. when the Tee handle is crosswise to the pipe the valve is closed.
You always want to bypass the water heater when you winterize the system.
Many people who think the water temperature is to hot, will crack open the bypass valve to temper the hot water.
Often when we are boondocking we don't use the water heater, and we just bypass it, and leave the tank empty. Reason being, on our HTT the WH is in the opposite end and corner of all faucets and we waste a lot of water trying to get hot water.
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