Simply put - periscope lock (not locking the target) locks the vertical movement of the periscope's FOV.
Think of it as periscope optic stabilization or a horizon lock.
That is... If I'm understanding the question correctly.
I find this setting to be "more realistic" when set to ON - if we were operating the periscope IRL we'd likely be stabilizing the FOV via our autonomous body balance movements.
Set to OFF the periscope is affected by vertical and lateral movements we'd be controlling "gyroscopically" with our hands, eyes and head.
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