That's the taillight warning light. All of the bulbs except the highmount brake light (or "third" brake light) are dual element bulbs. The warning light on the dash tells you if the brake elements do not offer the proper electrical resistance. If you have a bad ground, then it's possible that one or more of your brake lights are not illuminating, or not bright enough (can happen with a bad ground as well). These car's are notorious for bad grounds at the tail lights, so I'd go clean them up and inspect all of the bulbs.
Keep in mind there are 5 brake lights on these cars.
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1989 7MGTE R154 Targa Top White Package w/Blue Interior
Driftmotion 57trim CT26, Upgraded Intercooler, 2.25" Hard Pipes, 3" Turbo Back Exhaust with Test Pipe, HKS VPC w/GM 3 bar MAP sensor, APEXi S-AFC, Walbro 255lph fuel pump, ProSport EVO Series Boost / Fuel Pressure / AFR gauges, Lotek a Pillar Gauge Pod, HKS Type 0 Turbo Timer, Eibach Lowering Springs, Tokico Illumina II TEMS struts, custom powder coated Motegi Racing TrakLite wheels
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