The ECT button (which stands for "Electronically Controlled Transmission")
changes the shift points for the automatic transmission. When engaged,
the transmission shifts later, allowing the engine to get to a higher
power level and accelerate faster. Gas mileage is usually reduced in
this mode. Use it when you need to get up to speed faster; for example,
to merge into fast moving traffic. The normal position for this switch
is OFF.
OD, or OverDrive, is a 4th gear on the transmission that will engage
when you are going above about 35 mph that lets the engine operate
at a lower speed (RPMs) when all it has to do is maintain a high speed
when you are going over flat, even highway. This improves fuel
economy. Technically, any transmission gear with a ratio of less
than 1:1 is considered "OverDrive". OD can normally be left ON
except when going up a gradual hill; the overdrive tends to not
give the engine enough power to maintain a steady speed. This may
cause the transmission to annoyingly "hunt" between 3rd and 4th gear.
SOURCE:
http://www.faqs.org/faqs/autos/toyot...ection-41.html