It confirms only the function described for that indicator. It should not be treated as evidence that every cooling component is operating or that all food is at a suitable temperature.
What the observation tells you
Different circuits can serve the display, lighting and cooling functions. A visible indicator therefore provides one useful observation, not a complete electrical test. Opening covers to trace the supply or touching terminals is not a household check.
A useful next step
Record the indicator state alongside the temperature and any sound or warning. Use the manual's safe owner checks. If the appliance has electrical damage, burning smells or repeated tripping, stop use and obtain qualified help.
Manuals and supporting guidance
Model-specific instructions take priority. These references support the practical principles discussed here; they do not diagnose your appliance.