It probably means the input to the electronic device is at a level that could overwhelm the electronics of the pedal.
You might have to look at the schematic of the pedal to see what components are directly exposed to the input before that input gain control.
If there are a fair bit of components, then I would lower the input signal to the pedal.
When you input a loud and clean boosted signal and the indicator lights, are you getting any clipping when the light comes on?