L3 has a 7-way switch?

[jutter]

5=neck
4=neck and bridge (strat sound)
3=neck and bridge
2=neck and bridge (tele sound)
1=bridge

But there is still position between 5 and 4....and between 2 and 1 too...

BTW It's a LukeIII with the 2 transition humbuckers.

 

[beej]

Not exactly. The 5 way lever switch has multiple poles (4 sets of actual switches for each lever position). In-between the 5 lever positions, they don't all engage exactly at the same time. So, as you gradually move the lever, you'll get some in-between partial connections.

Is this is what you're describing?

More or less, all guitars with a lever switch behave like this. It's how people used to get the parallel positions on a Strat when they only came with 3-way switches.