So here's how I understand it, feel free to chime in guys I won't be offendeD!
In 2WD just the rear tires are turning.
In 4Auto, good for rain, slush, you can still turn and everything just fine, it's 2x4, and in moments where you're slipping, on comes 4x4. Those front tires come to life.
In 4high, you're "locked" (It was once called 4lock in the rams), the 4 tires are trying to turn, which also means the turning radius is impacted, binding, etc. It's why you're not supposed to engage 4high on dry pavement and try turning, the gears start to bind. In slushy slippy situations, when the outer tires have to turn faster than the inner ones - they're stuck turning at the same speed. BUT in slippery stuff, slipping can occur to protect the drivetrain.
In 4Low, you're in tank mode. All the torque you handle, keep it under 25mph-30mph I think?
The rebel's transfer case loses a 4Auto gear, but I believe it's in favor of a beefier, heavier, more robust system for the other 2 gears.
But it loses the 4Auto capability.