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I assume you are talking about the round thing in the drivers side of the oil pan with a wire coming out of it? It is an oil level sensor. If the oil level is dangerously low upon startup the display center will show OIL LEVEL LOW. This can happen when the car is parked on an extreme grade, usually with the nose of the car lower than the front as there is no oil touching the sensor when you start up...You have to cycle the key on level ground two times to allow the sensor to read that there is sufficient oil in the pan.

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Q: What is the thing on the oil pan on a mark VIII?
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