Mines an 1982 K10 4x4 with same tranny...
The wire goes to a switch on the brake pedal, out to a switch on the throttle and then to the tranny. Stepping on the brake or not enough throttle unlocks the torque converter clutch.
On my truck the torque can lock in second gear if all the above conditions are met. i.e. enough throttle, no brake and going fast enough. However if you are in 4x4 it will only lock in overdrive/4th gear. I added a switch early on to make it think it was in 4x4 so it will only lockup in overdrive while in 2 wheel drive.
This was in 1982, maybe they wised up and did my hack to all later on. That 700R4 is not a real solid, heavy duty tranny. Never should have been used in trucks...