That is a solenoid valve.
Not sure what its controlling, because the pictures dont show enough to distinguish and you dont give any details about where the hoses are going to.
But solenoids are typically used with front 3rd function and diverter valves for using things like a grapple. They are sometimes used to control rear remotes as well.
The red light simply indicates its getting power. So whatever that valve is controlling, is active.