That is what was known as a "Swift" train order signal.
The flat blade or "target" painted red turned crosswise to the tracks when the signal was set at "stop" by the train order operator in the depot.
Gears and shafts as described above were used to move it. The "clear" indication was when the blade was turned parallel to the rail so it couldn't be seen from the oncoming train.
For night use, there was a lamp that set on a stub shaft above the blade that showed a red aspect at night when in "stop" and a white
aspect when "clear".
The control mechanism inside the building was a flat semicircular plate that was mounted horizontally at the bottom of the control shaft going up to the gears that took it outside.
There was a lever that moved the shaft that rode on top of the plate with spring detent holes in the plate that locked it in either the "stop" or "clear" position.
The plate was painted red at the "stop" detent and white at the ""clear" detent.
Colo, RR Museum in Golden Co. used to have an operating signal like this in the main building bay window telegraph office display. I suppose it is still there.