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big_gregs diagram says a thousand words:
" Why? Because of space limitations I have a combined 2 channel / home theater system. I don't want to use the AV processor for two channel listening.
When listening to 2 channel, it looks like this: Source --> Preamp --> Amp --> Speakers.
The HTBP allows me to use the same amps and speakers for the front two channels. The volume control on the preamp is disabled and the signal from the source goes to the AV processor, which controls volume, room correction, etc.
When listening to home theater, it looks like this: Source --> AV processor --> L/R outputs --> Preamp --> Amp --> Speakers.
As the name implies, the signal bypasses the AV processor and goes to the amps/speakers with the simple push of a button, allowing you to share the amps for the front speakers between two separate systems."
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see the end, not beginning of this
https://forum.audiogon.com/discussions/avr-internal-2-channel-audio-mode-or-ht-bypass-external-equip...