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What damage can happen to a 1993 Jeep Grand Cherokee Laredo if you switch from 4 hi to 4 lo wheel drive while the engine is in drive?

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I bet it made a nice grinding sound didnt it? Yes, it can if you are going too fast. If it actually goes into low gear it will seriously spike the rpms and potential valve and lifter damage. This is what a rev limiter helps avoid though. If the engine sounded like it started sputtering when this happened then it is a good thing. It is one of those situations that you just have to let it go to see if it breaks. Good luck.
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