A '93 has a pure part time 4WD system, so there is no "auto" setting.
Normal 2WD (2H) is for every day driving. Power is only sent to the rear wheels, and the front drivetrain is completely slack (assuming the hubs are unlocked).
4x4 or 4H is only to be used in low traction situations. Equal power is sent front/rear, and there is no means of differentiation in the transfer case (which is why it should only be used in low traction situations where the wheels can slip. If the wheels can't slip, something else gives, and that could mean breaking something).
Low range (4L) is like 4H, only you have the additional advantage of a significant gear reduction (something like 2.5:1). This is useful when you want to go slow, but still use the engine's full power.