What is the meaning of the icon that can be changed in text messages reading pane

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AC Question

when reeding a text from a friend who also has and HTC , the Text icon in the top of the reading pane, next to the contact name can be changed from a standard text box to a text box with a smaller box in the background by clicking on it. This icon placed next to the 3 line options tab . Can anyone tell me what this means / does ?
 

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