You won't find much on the Awd system on here that model was never available in the U.S.
I've got the AWD 1995 ody and i haven't got a snow button any chance you could put a picture of the button on and may be some pics of the AWD gear under the car. The AWD system on the first gen ody is the same as a 1995 onwards CR-V it shifts power to the rear wheels when the front wheels spin this is done via a set of clutches in the rear differential. So most of the time the car is front wheel drive and then when they slip at a set speed the clutches engage and power is sent to the rear wheels making it AWD. Its a very simple system and a similar setup on the 1st and 2nd gen Toyota Rav4. One thing to mention the rear diff oil degrades fairly quickly so regular changes are a must and only use genuine Honda DPFS fluid or it will wreck the diff.If you drive in full lock round a car park and get a noise from the rear like a grinding or some judder from the rear then the fluid is shot. For a more in depth description of the system Google Honda CR-V AWD system