The light is to indicate a fault with the brake system and that the piston in the prop valve/distribution valve has defaulted to either the rear or the front brakes. The switch is threaded into the valve's body... it has a pin which usually sits in a detent of the piston. If the pistons moves too far to one side the pin rides up the piston's machined surface and completes the circuit to illuminate the light.
The light is grounded by the switch on the pressure differential valve and also grounded to ignition switch on start. Otherwise the light should go on while in start and if one side of the brakes fail (when the truck was built).
I will add to other posts; The chrome bezel with red translucent disc is missing but the shell is there. To replace, press the spring loaded assy from the back side towards rear of truck. Doing so will push the shell forward. Grab the front of the shell and twist. Install replacement bezel.
66 F250 camper special
69 F250 Explorer
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Various IH & JD tractors (5)
TT & XT500 mc's (6)
BSA, Triumph's and twenty Yamaha two strokes