tod SHOULD engage once you get up to a certain speed - that is 4hi (awd) - but if all of the lights on your tod display are on it is saying that your power is being split 50/50 (which is 4lo) if you are stuck in 4lo i would not drive it until you get it unstuck you can tear up your 4wd system
you would know if it was stuck in 4lo it will make noise turning on dry pavement (this is also what will mess things up)
hopefully its just a bad signal from your tod sensor to the display and mechanically its working properly