It's a switch to ground (like your horn switch) that (optionally) activates a circuit on your PDM60, as opposed to a positive trigger (like the ignition power, or signal from my key-less).
In the case of the horn circuit, you program it for Ignition AND Ground Trigger, so that horn only operates when ignition is on and the button is pressed.
You need to read my KeyLess install guide and also the PDM60 guides

(in your specific Key-Less guide we initially set it up similarly using ground/negative trigger for aux lights - same principle for horn, just need to use channel 5 instead to get the higher current required and also reprogram the trigger requirements)
Note again that the Brake/Turns/Horn circuit requirement has been reduced significantly because that circuit no longer has to provide OEM horn current.
That also means you can increase the channel 4 current, so you can use that for either your planned aux lamps or heated gear.
So you re-program the PDM60 as per the second diagram, then remove the OEM Horn and run a wire from the Purple/Black Horn wire to the Blue wire at the PDM60 accessory connector; and connect the Brown Wire to the Compressor Positive and compressor negative to battery negative.