The Capitalization Toggle is a context sensitive indicator that shows whether automatic capitalization is:
in the window you are currently typing in.
While typing in a given Client Application window, you can toggle automatic capitalization on or off for this window by clicking on the Capitalization Toggle or by typing the Ctrl+9 shortcut. Instant Text will then remember your preferred capitalization setting for that window and apply it automatically whenever it encounters that window again.
Note that capitalization can be toggled
on or off only if it is enabled under the Options Dialog Automatic tab.
Else automatic capitalization is always off, and the Capitalization Toggle is not even displayed.