I'm not sure I understand your question. Your 1988 Range Rover has fulltime 4wd (all Range Rovers) and the LT230 transfer case has a manually locking center diff. So, when you move the shifter to the right, the center diff is open. With the shifter to the right and back you are in 4wd Hi with an open diff. Right and forward and you are in 4wd Lo and the diff is still open. Move the shifter to the left and you have now locked the center diff with forward motion engaging Lo or Hi as described above. Under no circumstances should you drive around on dry ground with the center diff in the locked position. This should only be used in situations where traction is marginal otherwise you will do damage to the drivetrain.
I don't know what you mean by regular drive. Did you get an owners manual with the truck? If so, you should take the time to familiarize yourself with the unique features of your truck. Alternatively, take the time to peruse
www.rangerovers.net.