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This effect emulates Amp Sag - the effect created by the drooping of the power supply voltage in response to large transient signa ls, which lends a certain dynamic feel to a tube amplifier, that is not generally found in solid-state amps.
The 3 position Color switch doesn't drastically change the sound, instead it adapts some frequencies typical of your amp. The goal is to keep it's unique "color" and just slightly modify it. In the Pimento position the frequency band is sharper, like a loud-speaker played really loud, making a slight limitation of the extreme frequencies output. With the Lime position you get a subtle and better execution of high pitch strings and high frequencies. And finally, using the Fat Melon position it will give a boost to low pitch strings and slightly lower the high frequencies.