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That's the pre-explosion warning light a design feature left-over from the "Burger Wars" of the 1980s. People suspect that Volvo kept the design feature as a hedge against the upcoming Internet-Website Wars. Turbo Volvos, in particular, were equipped with self-destruct in case they were ever captured by an enemy industry. It means that your car is about to explode.
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Seriously, though, it's just a bulb-out indicator.
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Six Volvos: all wagons.... 1972 145S, 1976 245 DL, 1983 245 GL, 1986 740 GLE, 1990 740 GL, now a 1995 940. Number 7 (a 1967 122S Wagon) is on the way.... Who needs a sedan, when you've got storage compartments in a wagon?
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