What do the three LED lights on the Code Reader indicate?

The GREEN LED indicates all engine systems are running normally with no diagnostic trouble codes present. The YELLOW LED indicates a possible problem with a pending DTC present and/or some emission monitors have not run their diagnostic testing. The RED LED indicates there is a problem in one or more vehicle systems with DTCs present, and the Check Engine light on the dashboard will be lit steady on.

From the official Innova 3100 OBD2 Code Reader manual, page 8

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