I've driven many GM trucks over the years and have a pretty good understanding of Grade Braking.
When driving without cruise control active Grade Braking downshifts only occur with your foot on the brake. If coasting downhill without your foot on the brake Grade Braking will not occur. With cruise control on, Grade Braking occurs without your foot on the brake (naturally because the brake pedal would cancel cruise control).
Grade braking is tuned to be more responsive when in Tow Haul then when not in Tow Haul, whether with cruise control active or not.
When a Grade Braking downshift (not in cruise) the transmission will upshift again when you step into the accelerator pedal. When a Grade Braking downshift occurs with cruise control on the transmission will upshift again on its own without stepping into the accelerator pedal.
Grade Braking is enabled every time you start your vehicle but the Tow Haul switch can be used to disable Grade Braking by holding the switch for 5 seconds or so. A message displays indicating Grade Braking has been disabled. It can be re-enabled either by holding the Tow Haul switch again for 5 seconds or by shutting the vehicle off and restarting the vehicle.
When a Grade Braking downshift occurs a message will display in the IP. According to the owner's manual it reads Grade Braking Active. The message only is displayed on the first Grade Braking downshift after the vehicle is started. There could be many subsequent Grade Braking downshifts after the one for which the message is not displayed.
I'll copy a few sections of the owner's manual:
Grade Braking is not available when
Range Selection Mode is active.
See Tow/Haul Mode on page 9-31.
So it's not available when in the M position.
GRADE BRAKING OFF
This message displays when grade
braking has been disabled with the
Tow/Haul Mode button on the end of
the shift lever. See Tow/Haul Mode
on page 9-31, Automatic
Transmission on page 9-27, and
Cruise Control on page 9-41.
GRADE BRAKING ON
This message displays when grade
braking has been enabled with the
Tow/Haul Mode button on the end of
the shift lever. See Tow/Haul Mode
on page 9-31, Automatic
Transmission on page 9-27, and
Cruise Control on page 9-41.
GRADE BRAKING ACTIVE
This message displays when grade
braking has been activated while
driving on downhill grades. This
message will only appear the first
time the feature is activated in an
ignition cycle. See Tow/Haul Mode
on page 9-31, Automatic
Transmission on page 9-27, and
Cruise Control on page 9-41.
Normal Mode Grade Braking
This mode is enabled when the
vehicle is started, but is not enabled
in Range Selection Mode. It assists
in maintaining desired vehicle
speeds when driving on downhill
grades by using the engine and
transmission to slow the vehicle.
The first time the system engages
for each ignition cycle, a DIC
message will be displayed. See
Transmission Messages on
page 5-43.
To disable or enable Normal Mode
Grade Braking within the current
ignition cycle, press and hold the
Tow/Haul button for five seconds.
When the button is released, the
requested mode change is made.
A DIC message displays. See
Transmission Messages on
page 5-43.
For other forms of grade braking,
see Tow/Haul Mode on page 9-31
and Cruise Control on page 9-41.
Tow/Haul Mode Grade Braking
Tow/Haul Mode Grade Braking is
only enabled while the Tow/Haul
Mode is selected and the vehicle is
not in the Range Selection Mode.
See “Tow/Haul Mode” listed
previously and Manual Mode on
page 9-30. Tow/Haul Mode Grade
Braking assists in maintaining
desired vehicle speeds when driving
on downhill grades by using the
engine and transmission to slow the
vehicle.
To disable or enable Tow/Haul
Grade Braking within the current
ignition cycle, press and hold the
Tow/Haul button for five seconds.
When the button is released, the
requested mode change is made.
A DIC message is displayed. See
Transmission Messages on
page 5-43.
See Towing Equipment on
page 9-77.
For other forms of grade braking,
see Automatic Transmission on
page 9-27 and Cruise Control on
page 9-41.
While going downhill vehicles with a
six-speed automatic transmission
have Cruise Grade Braking to help
maintain driver selected speed.
Cruise Grade Braking is enabled
when the vehicle is started and
cruise control is active. It is not
enabled in Range Selection Mode.
It assists in maintaining driver
selected speed when driving on
downhill grades by using the engine
and transmission to slow the
vehicle.
To disable and enable Cruise Grade
Braking for the current ignition key
cycle, press and hold the Tow/Haul
button for five seconds. A Driver
Information Center (DIC) message
displays. See Transmission
Messages on page 5-43.
For other forms of Grade Braking,
see Automatic Transmission on
page 9-27, and Tow/Haul Mode on
page 9-31.