I think Don’s right. It’s meant to allow one charge source (usually the alternator) to charge two battery banks, but separate them when there’s no charge current. The downside of the old style diode based isolators like that is that they have a significant voltage drop between the charge source and the batteries (all that energy gets dissipated as heat from the heat sink fins), so the batteries don’t charge very well. A more modern solution like an ACR has all of the benefits without the voltage drop.