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On my '92 Camry and '96 Avalon, the inner bearing didn't have a seal, so that O ring is to keep dust and moisture from getting into the inner bearing in the cartridge. I'd guess your 2000 Camry is the same.
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1992 Camry LE, V6 (3VZ-FE), ABS brakes, 330k miles, dark emerald pearl, owned since new.
1996 Avalon XLS, ABS brakes, moonroof, white, acquired w/ 139k miles, now at 261k.
2001 Yamaha FZ1, Ivan's jet kit, resprung all around, Ohlins in the rear, Race Tech cartridge emulators in the forks, 45k miles.
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