N on the gearbox/transmission is Neutral for the transmission. Nuetral meaning that the power is not going anywhere so you are not going to move anywhere. The N next to the 2high, 4high, 4low is for the transfer case in nuetral. The transmission sends power through the transfer case and the transfer case sends the power to the rear wheels or front and rear wheels depending if it is in 2hi, 4hi or 4lo. The N setting for the transfer case is used when towing the vehicle with all wheels on the ground, like people do behind a big RV/motor home.
The "N" means neutral. The transfer case like the transmission has a neutral gear position. This is used when towing the vehicle, it can be shifted into neutral and separate the tranny from the driveshaft and be towed without the wheels turning back into the tranny.
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