Phase varies the phase of the output signal. Normally it's just a 0, 180 two position switch. Like that it has the effect of reversing the polarity of the subs. Depending on the install, crossover freqs and midrange speakers, you may get a smoother midbass transition with the subs out of phase. If the phase setting is a variable dial, it will have a center freq associated with it and will adjust the phasing relative to that center freq acting as an analog time alignment filter.