That is truly weird.
It looks like it must be called, periodically, every ten milliseconds, if the labels are to be believed.
To understand the counters think of the last have of the previous scan. By providing an 'Always Off' enable the CU (Count Up) bit is cleared. Now in the first half of the next scan of this logic the 'Always On' triggers one count.
They are generating toggling by examining the accumulators of the counters. But I don't think the toggle outputs (bottom section) or the counter resets are correct.