Next to the trim switch there is a switch labled trailer. What does the trailer switch do? The boat is a 97 baja hammer w/ bravo 1 drive.

Should raise the drive for trailering the boat.

Yep,
trim switch will/should only raises drive to max trim running height,
trailer raises drive all the way up.

So it is basically used to transport the boat when on the trailor. I thought it could have had something to do with the drive while running the boat.

The above replys are correct!

Did you get any manuals with the boat?

I suggesting going though those and taking a safety course if you haven't already...

You usually don't want to run the motor with the drive up to much due to stressing the u-joints.....

Yes.
Don't use the trailer button to trim higher than what the trim button will allow, to get that jet boat rooster tail thing going on. (Besides, it ain't cool on a non jet drive boat.) Only condition when to use trailer while running will be in shallow water and at idle, and idle only.
Is there a problem with the trim switch or are you just curious?

Also note, that although I could not find it in ANY Merc manuals, limit usage at idle or in shallow water to a bear minimum with the drive up. Brand new 496 H.O. w/Bravo 1, water intrusion into the bellows, bad gimble bearing with 23 hours (brand new). Dealer and Merc. would not cover, said that the drive was probably run in the up position, causing the U-joint to rub the boot, allowing water intrusion, along with "stress" on the U joint. Since then, I admit, whenever I hear any Bravo 1 started with the drive up, one can hear the "rumble", of the U joints.

Just my experience, hope it helps.

No the trim works fine. I was just wondering. I was testing the trim today and I accidentally hit the driveway with the drive. It wasnt real hard, but it did hit the concrete. It looks fine, it already had scratches on it. Has anyone ever done that before?

No F@!@#$%$ WAY dude! You've gotta be joking>?!??!That's gotta be the funniest $hit I've ever heard! DOH! You admitted that in public??? Were the neighbors watching ... wife??? Dude you'd better just go sell that whole package, right now, before you knock over a gas pump at the corner station!! LMAO!

Just jokin' of course Dave

Only on my previous boats. New boat sits to high on trailer, not a problem. Also is great since I can tow with drives down.
BTW, both switches will allow drive to go all the way down. But sounds like you found that out!