First of all, no question is dumb.Asking questions is how we all learn and this forum is made for that. The lockout hubs rotate to either connect the splines on the ends of the front drive axles to the hub or not. Engaged, the drive shafts drive the wheel, disengaged the wheel will not be connected to the axle. So when your front end is not engaged with the air shift, and the hubs are disengaged, no part of your front driveline is turning. If you do not have lockout hubs, and the transfer case is not engaged, your front wheels will still be turning the axles etc.There is a lot of discussion on the forum pro and con about the merits of having lockout hubs.
Hope this helps.
BC