Locked and s off is a great position to be in if you want to mod your phone in any way. The previous owner would have paid $25 for s off from an app called sunshine, this is equal to and better than unlocking the bootloader as you can s on or off and the bootloader will still be classed as locked.
Read up on it.
If you decide to s on your phone it will remove the test device message and will be 100% stock. Do bear in mind that with s off you can still update to any ota without issue. To s on, run the sunshine app ( from Root Ninja ) and it should recognise that the phone is s off and that it was paid for ( the app is tied to the phone not the owner ) . You will be able to s off or s on at will. Keep the bootloader status as locked.
S off will permit you to flash different firmwares to your phone.
If you have no interest in root and s off, do as I suggest and read up on the sunshine app, install it, then let it set s on back for you.