What exactly does an LSD do you ask? well without an LSD your car is actually 1 wheel drive, in that it can't supply torque to both wheels at the same time and will only supply torque to the wheel with less grip, which is what the shortfall is to an open differential (what most vehicles have).
An LSD only lets the wheels spin at different speeds by a limited amount, which is typically a percentage difference, which is when the differential locks and both wheels get power. This is not how locked differentials work such as in off road trucks which supply equal torque and rotational speed to both rear wheels at the same time, which can cause issues with handling.
** NOTE ** This is for Automatic Transmissions ONLY
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