This was originally added here — https://en.wikipedia.org/w/index.php?title=Amiga_support_and_maintenance_software&diff=prev&oldid=209935850 — then in reference to floppy *disks*. It is unclear if there might have been external floppy drives with such physical LEDs , or perhaps more likely this was about skeuomorphic on-screen LED-like track indicators in disk copier software. (en)
Some floppy drives included LED track indicators to show if the disks were hacked by the original programmers to support up to track 82 of the disk. (en)