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Moderation : Legacy Ann, Rogin, diabolo121, funnyone, haffyfan, minkthepink

What does that gear thing on the top right of my skill training bar do?

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It will train your horse in set bulk increments, which are chosen in your account settings>gameplay preferences, rather than you picking a different training duration time whenever you train your horse. I think simplified training defaults to 2 hours, so if you have it enabled (by clicking the cog wheel) your horse will train in 2 hours increments whenever you click to train.

The cog wheel in general means that it will automate/simplify a task.