The two position is just "On" and "Off." It takes power from upstream, and either does or does not provide power downstream. Thus the notion of "radial."
The four positions are essentially, "connected to power from the left," and "connected to power from the right," and "connected to power from both left and right," and "off." It enables you to have a group of such switches arranged so that power is connected in a complete circle. Thus, you can still have power to everything in the loop, even if you open one switch. Also, the "off" position turns power off to the load of that switch, but still connects left side to the right side. That enables you to work on one load, without breaking the loop configuration. Finally, if you need to work on one of the switches in the loop, you select "left only" on the switch to the left of the one you wish to turn off, and you select "right only" on the switch to the right of the one you wish to turn on. This takes away all power from the switch in the middle, but keeps power to everything else in the loop.