More specifically, it is the receiver for the RF (or in some markets IR) fob which arms and deactivates the alarm. It also contains some LEDs which indicate whether doors are open and whether the alarm is armed or has been activated. There is a button that can be used from within the car for programming the alarm.
At 25+ years old these units are apt to be a bit troublesome, but in my experience are easier to DIY repair than the later Volvoguard 2 alarm. It is possible that a PO may have bypassed the alarm relay (hidden behind the dash) if they no longer had a working fob (NLA from Volvo).
Key pointers if you plan to play with it are:
There is information in the user manual about how it is supposed to operate.
There is a very useful service/programming manual available online which tells you how to programme fobs and features. It is the Volvoguard 1 variant.
The receiver (the bit you’ve photographed) can easily be adjusted or repaired if the fobs no longer work from a distance.
The fobs can generally be repaired with basic soldering skills if they no longer show the red light nor operate when the button is depressed.
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