If the light stays on for more than a few seconds, that means your water heater did not ignite and has gone into bypass. Most likely caused by air in the lines. Always purge the lines by lighting the stove first and let the burners run for 20-30 seconds.
You refrigerator (if LP) and the furnace have the same feature. It’s a safety action that shuts off the gas flow to the appliance if it doesn’t light within a few seconds. It prevents a dangerous gas build up. To clear it, shut the switch off, purge the lines as mentioned above, and then turn the switch back on. It should light at that point unless there is a different problem such as a spider web in the flue.
I know you’re not currently having a problem and just wondering what the light was for, but figured this would be a good time to provide additional explanation.
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