CDL allows you to lock the center differential while your transfer case is in "HI" which effectively gives you "4HI" as opposed to the AWD that full time 4WD is.
Simply put, equal power will go to your front tires as is going to your rears. Under normal operations (when in HI) there is generally more power going to your rear tires than your front.
Your lockers (FR/RR) will only operate when your transfer case is in LOW.
The 7-Pin mod allows you to unlock the CDL while your transfer case is in LOW, which allows for easier steering (like being back in AWD/Full Time as opposed to true 4LO)
Certain Rav4's have CDL buttons as well (95-97 Dashes):