If you are referring to the red light switch thing; it cuts power from both battery and shore power to the 12V system ( 12V fuses, 12V power center, whatever). Yes, you are correct there.
Its not needed to be ON while the vehicle is unused. If plugged into shore power the battery will still be charged with this SW OFF. Of course if you need 12V components such as lights then it needs to be on.
Driving is another dimension. There are certain components that are supplied 12V power from the cab 12V system, even if this SW is OFF; the refer, propane alarm, etc. Thus you can travel with the SW off, but you wont have full 12V functions.
I personally turn if off when parked unused at home. Turn it on all else.
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