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I have a Truetone with that same chassis, that lever is the channel indicator, it has a continuous type tuner and the lever rotates around as you turn the center knob. The little lever on your is probably for rapidly tuning without having to crank the center knob a bunch of times.
If I remember right theres a switch in the tuner that flips from low to high band when you get to channel 7.
On mine it simply pulls off like any other knob, yours may just be stuck but don't overlook the possibility of a set screw, perhaps accessible from the bottom?
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