Whats the deal here, is this a feature IRL, what's it for?

Datalogger ?

...why, IRL logs are managed from the guy's with laptops sitting in pit-lane...

probably some sort of inbuilt toilet system in the car that disposes of certain logs when toggled on

A not so useful button? I don't know,maybe it is a datalogger,as it was said before.

Quote from CSU1 :

...why, IRL logs are managed from the guy's with laptops sitting in pit-lane...

In some races it's true. But when you're having fun with nobody around, you still have to manage everything yourself.

Real drivers with this type of cars usually don't drive alone, but we simers do ~　

so you can turn the data logging on or off? maybe sometimes you don't want to be data logging? Maybe the unit needs a reset? never used a data logger, but it makes sense to me to have a switch for it..

In our Formula Student car we were also able to activate and deactivate datalogging inside the car.