If the switch is ON the rule is disabled. It really is an arbitrary choice on my part, and some people might prefer it to be an “enabled” switch with the opposite meaning. But, it really makes no difference if you are using a dedicated switch for disablement, like a virtual switch. The feature is not intended to be generalized, where you can pick which way it means which – that would be confusing.
My recommendation is to use a virtual switch. That can be turned on or off by any number of mechanisms to disable the rule, including by another rule or by a Trigger Happy trigger.