If it is the same as the Disco II, this is covered in the owner's manual. A light comes to tell you the transfer case is getting too hot. The manual says to pull over for a while and let it cool down. Then you can drive until it gets hot again. When you get back to town, then you should have the fluid checked; it will probably be low.
How do I know? My wife had this occur and just ignored the light. Ended up burning it up and had to get another from Will Tillery. If I had just looked in the manual, I would have had her pull over for a few minutes but no such luck.
Then again it may not be the same as for the Disco.
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