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Overdrive is a higher gear for higher speeds. This reduces engine rpms and helps reduce fuel use. In most cases, the transmission will automatically change gears to maximize torque when demanded. Leaving it on will not hurt the car.
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Overdrive is for cruising/ maintaining a constant rate of speed; this gear actually uses the least amount of gas as it keeps your rpm's low. If your car doesn't have overdrive, then that is a BAD thing.
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if you are driving through montains or steep hills you should drive with the overdrive OFF, it causes the enging to spin at a lower RPM and keep the engin in better condition but with the overdrive on it can cause the engin to heat up more. Thus when you are driving on rether flat ground (small hills bridges and such are fine) you should use the overdrive.
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The "overdrive" position on your Taurus' automatic transmission is the position you would use for all normal driving situations. It is designed to give you the best fuel economy. There are very few reasons to ever drive in any other forward gear.
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