When the plunger raises it allows fuel to pour directly into the carb Venturi.
So to directly answer the question it controls fuel.
There is an old Honda service bulletin about drilling out the jet where the needle seats to correct cold start issues.
Current toys..
1986 Honda 350X..trail bomb!
1985 Honda 250SX..my main mudder
1985 Honda 250ES..Back in Black Trike
Current non-trike toys:
1990 Honda TRX300FW
1995 Seadoo GTX
1998 Polaris Indy Lite 340(Nearly new looking)
1998 Polaris Touring 500
1998 Club Car (electric)