Just to expand slightly on what has already been stated... yes, the knob on your receiver is a variable version of the more common loudness button. It was a feature for many years on Yamaha receivers and integrated amplifiers of the "Natural Sound" range (and may still be, I haven't looked closely at any Yamaha equipment in some time).
Loudness buttons or controls are meant to compensate for the human ear's variable sensitivity at different frequencies, as plotted by the "Fletcher-Munson curves", a statistical averaging of listening tests compiled some years ago. We tend to be less sensitive to bass and treble at low volumes compared to the midrange. So one way to compensate and make music sound more "natural" at low volumes is to bump up the bass and treble.
Whereas most makers of audio equipment that chose to implement this feature put it in the form of a button (ideally to be pressed only when listening at low volumes), Yamaha built a variable circuit that gradually boosts the required frequencies as you turn the volume
down - so the maximum effect is obtained when the knob is turned counter-clockwise.
As I recall from the user manual of a friend's rig many years ago, Yamaha recommends calibrating and using the thing like this: with the main volume knob turned all the way down, crank the smaller loudness knob all the way up. Then turn the volume knob back up until the music is as loud as you're likely to ever want it. And leave it there. From now on, use the smaller loudness knob to adjust your volume instead of the normal volume knob - as you turn your music down to quieter levels, the bass and treble are gradually boosted so you can still hear them properly.
It's a neat trick if you can remember which knob to turn
Of course my memory may have failed me on a detail somewhere; apologies if your amp behaves differently from what I described, but I thought it might be worth passing on.