Centerboard, not swing keel
Although the O'Day 25, like the rest of the keel/centerboard O'Days will sail with the cb fully retracted (or even missing said one owner) the boat points best with the board all the way down. You may wish to raise the board to the 3/4 down position if sailing under main alone to better balance the sailplan. When reaching, raise the board about 1/2 way. When running before the wind, raise it most if not all the way up to reduce drag.The CB can be adjusted to balance the sails, adding/reducing weather helm and lee helm under different conditions.Now, if you are sailing in shallow water, the board may need to be raised to reduce draft, perhaps that is what the previous owner meant?